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LTA is currently working with operators to shorten the Vocational License application process for all Point-To-Point (P2P) drivers, which includes taxis and private hire cars (PHC).
Senior Minister of State for Transport Amy Khor explained in parliament that while P2P ridership has returned to around 80 per cent of pre-Covid-19 levels, there are now fewer P2P drivers, as some had left the sector during the pandemic.
"Hence with fewer P2P drivers available, riders experience high surge fares and longer waiting times, especially during the late evening or night," she said.
Number of drivers decreased in 2022
Daily P2P trips were around 772,000 in 2019, dropping to 516,000 in 2020, according to LTA data on the Singstat website.
That number increased to about 554,000 daily trips in 2021, and 582,000 in 2022.
Image via Singapore Department of Statistics
On the other hand, the number of active P2P drivers decreased from 69,000 in 2021 to 55,000 in Q4 last year.
The decline is steeper for taxi drivers as there are around 9,000 fewer active drivers compared to pre-Covid, and many who left were two-shift drivers who would drive night or weekend shifts, said Khor.
Khor said while the drivers' livelihoods were significantly impacted during the pandemic, with recent ridership recovery, drivers have seen improved earnings and incomes returning to pre-Covid-19 levels.
She added, "In addition, fuel prices moderated over 2022, mitigating the impact of GST on driver costs."
Industry needs time to adjust to demand
"The industry will require time to adjust to the demand for P2P rides," Khor explained.
Khor shared that P2P operators are recruiting more new drivers, and operators are also rolling out new features to match demand and supply better.
For example, some are introducing "hotspot navigation" to alert drivers to areas with more booking requests; Some are reintroducing ride-sharing services to allow riders going to similar destinations to be served by one driver.
More new driver applications
Khor noted that the number of drivers joining the industry is increasing, with LTA receiving 950 new applications per month for P2P drivers' Vocational Licences in 2022, compared to about 650 per month in 2021.
She said LTA will work with operators to reduce the time to process vocational licence applications.
Khor said,
"As operators tackle new challenges faced by the sector, we will continue working with industry stakeholders and drivers to address issues – ensuring driver's livelihoods, addressing P2P availability, and looking ahead to shifts in the sector's landscape."
Top image via LTA on Twitter