Still in disComfort

National Taxi Association's action seen by some as price-fixing bid
On Monday, the National Taxi Association (NTA) issued a statement shortly after ComfortDelGro announced changes to its basic fares, peak period surcharge, city area surcharge and call booking fees.

Legal experts yesterday offered mixed views on whether NTA's statement could be deemed as an attempt at price-fixing.

CCS reiterates that price-fixing among businesses is illegal
CCS reiterates that price-fixing among businesses is illegal and opens them up to investigations and possible financial penalties under the Competition Act. Businesses are, however, free to determine their own prices independently.

Trade or industry associations should not become the vehicle to facilitate price collusion or price-fixing.

How Would An Increase In Taxi Fare Affect Both Cabbies and Commuters?
By lowering the rental cost, it’s a win-win situation for both cabbies and commuters, such that taxi fares will remain constant in spite of increasing fuel price, and at the same time, maintain (or even increase) the ridership for taxi.

When more people choose to commute by taxi (instead of car rental or other means of private transport), profits will increase, and this will be a win-win situation for both the operators and the cabbies who drives taxi for a living.

A fare reason to be upset, Comfort
Ultimately, what Singaporeans want is a fair trade-off. It seems fair to suggest that passengers are not better off since the industry was deregulated in 1998 to allow taxi companies to set their own fares.

Having transport fares (bus/train/taxi) rise in quick succession, coupled with questionable behaviour by the association, weak arguments from the operator and the authorities' silence to feedback is not the way to go.

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