Amy Khor on support for P2P sector

The point-to-point (P2P) sector complements Singapore’s public transport network with an average of 606,000 daily trips made by some 67,000 taxis and chauffeured private-hire cars (PHCs) in 2023. The Government watches developments in this sector very closely but does not set fares as these are determined by the operators based on market competition. Senior Minister of State for Transport Amy Khor, who said this in reply to Parliamentary questions on Tuesday (Sep 10), said the Government allows the supply of P2P drivers to move in tandem with commuter demand and price signals. Following the easing of COVID-19 measures, demand for P2P services rose, which led to higher fares from surge pricing. In the past two years, P2P operators have adjusted fares to help drivers cope with higher operating and fuel costs. In response to higher fares, more drivers entered the market. Between the second quarter of 2023 and the second quarter of 2024, the number of active PHCs and taxis increased by eight per cent. However, the average daily number of P2P trips increased by only one per cent during the same period. As a result, P2P fares and drivers’ earnings moderated. Dr Khor said the Land Transport Authority (LTA) understands the concerns of affected P2P drivers and will continue to look at ways to support the smooth and efficient functioning of the market. These include measures to reduce operating costs. Turning to concerns about foreign vehicles providing illegal P2P services which affect demand, she said LTA has stepped up enforcement against errant drivers in recent months and will continue to do so. LTA will also work with the operators and labour movement to assist drivers who are considering other types of work.