Discount ads on taxis illegal, says LTA
Marketing tactics and soliciting are against company rules and the law
By Maria Almenoar
A CABBY'S attempts to get more passengers by advertising his discounted rates has been shot down by authorities.
Trans-Cab driver A.L. Tan had placed a handwritten cardboard sign at his windscreen offering to waive the new peak hour surcharge, which is 35 per cent of the metered fare, compared to old rate of a $2 flat fee.
According to cabbies, since the fare increase last month, many passengers are avoiding taking cabs during the peak hours of 7am to 9.30am, and 5pm to 8pm.
Mr Tan's cab company has warned him that his marketing tactics run against Trans-Cab's company policy.
The Land Transport Authority (LTA) on Monday backed the taxi company.
'If these drivers advertise, there will be an increased tendency for them to solicit for customers based on lower fares advertised if no commuters board their taxis,' said the LTA spokesman.
Read the full story in Tuesday's edition of The Straits Times.
This is simply amazing! On one hand, the Govt says that the taxi market has been liberalized, so taxi companies can set fares as high as they like and the govt won't interfere. Yet the moment a taxi driver tries to be a bit more entrepreneural, the LTA suddenly swoops in from nowhere to censure the poor man.
The LTA spokesman said, "If these drivers advertise, there will be an increased tendency for them to solicit for customers based on lower fares advertised if no commuters board their taxis." (Read: If we let one fella do it, EVERYONE will do it and we'll end up with ridiculously low taxi fares.)
SO?! That's better for consumers, right? Oh sorry, I forgot the interests of companies come before citizens. After all, companies pay taxes, but most of us lousy plebians hardly pay any income tax. How naive of me.
And pray tell how is something like this illegal? Is LTA going to justify this or are we supposed to take their declaration as the Gospel truth? ST reader grognard, who commented on this article, wrote:It may be against company policy, but it is hardly illegal.Perhaps LTA officials need to ask themselves: Am I a transport company regulator or a transport company advocate?
The Public Transport Council Act (CAP 259B) states:
Bus, taxi and rapid transit system fares
23. —(1) No person shall be entitled to demand and take any bus, taxi or rapid transit system fare in excess of that approved by the Council.
(2) Subsection (1) shall not prevent any person from demanding or taking a lower fare than that approved by the Council.
LTA ups taxi fares to up profits for GLCs, then declares illegal a taxi driver giving discounts
Tuesday, January 08, 2008Labels: public transport, taxi
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