The number of private-hire cars plying the roads in Singapore may fall drastically after the middle of 2018.

June 30 deadline

The Land Transport Authority (LTA) revealed that 34,000 drivers have not passed the vocational licence test, Today reported.

The deadline to pass the test is June 30, 2018.

After this deadline, all private-hire drivers must hold the Private Hire Car Driver’s Vocational Licence (PDVL) to provide the service.

Currently, those providing private-hire car services are on a temporary one-year concession.

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"Non-serious" drivers

In total, LTA has received 73,000 PDVL applications to date, after applications opened in March 2017.

Of these, only 17,000 applicants attended and passed the test. This group can be considered "serious drivers".

Those who applied for a PDVL before July 1, 2017 must attend a course and pass a test by June 30, 2018 to continue providing the service.

Some 18,000 drivers who put in their applications after July 1 last year have not undergone training or passed the test. These drivers can provide private-hire car services only after they obtain their PDVL.

For "non-serious" drivers who are providing private-hire car services for side income or for fun, them falling out of the market entirely would bring good news and bad news.

Bad news

The bad news would be for commuters.

Drivers who are not going to take the test could be planning on driving only until the end of June. They would then exit the market and not return.

With fewer cars on the road and less fluidity compared to previously where "non-serious" drivers can enter and exit the market more easily, prices might surge more often.

Good news

"Serious" drivers would benefit given that prices might go up as they are the only supply relied upon to cater to demand.

Their daily takings can be more stable, given that earnings would no longer be pilfered by "non-serious" drivers.

Loophole exists

But with all regulations, it is not watertight.

There is also the option for "non-serious" drivers to switch to Grab’s social-carpooling service GrabHitch, which is not covered under the licensing regime.

Here comes a new challenger though:

Practical knowledge for young adults:

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