ComfortDelGro Corp : ComfortDelGro Revises Taxi Fare Structure

COMFORTDELGRO REVISES TAXI FARE STRUCTURE

5 December 2011 - ComfortDelGro Group is revising its taxi fare structure to better match supply with the ever-growing demand for taxi services in Singapore. The changes, which include both increases and decreases in fares and surcharges, will come into effect at 6.00am on 12 December
2011.
In introducing the fare changes, ComfortDelGro paid special attention to changing trends in the demand for taxi services. In particular, strong population growth and an increase in tourist arrivals have resulted in a significant spike in demand for taxi services throughout the day - even during traditionally "off-peak" hours. Weekends and public holidays, which used to be "quieter", have also seen a sizeable jump in demand for taxi services in recent years.
The new fare structure will therefore include reductions in the peak hour surcharge coupled with an extension in the peak periods to include weekends and Public Holidays. The evening City Area surcharge will also be extended to Sundays and Public Holidays while the current $1.00 Public Holiday surcharge will be removed.
To encourage commuters to call for a cab, call booking charges will also be reduced.
Given the combined effect of increases and reductions in fares and surcharges, the new fare of an average 10km trip during the peak period is expected to remain largely unchanged at $12.30. Passengers who travel by taxi during certain periods of the day will actually see a drop in total fares, while others, specifically those who travel by taxi during high demand hours, will see an increase in total fare bill.

ComfortDelGro Corporation Limited

205 Braddell Road Singapore 579701 www.comfortdelgro.com

Co. Registration No.: 200300002K

Mr Yang Ban Seng, CEO of ComfortDelGro's Taxi Business, said: "With population growth, the opening of the integrated resorts and major shopping malls, as well as a more vibrant night life, taxi demand has increased significantly in recent years. This is especially true for the evenings and weekends. The revised fare structure aims to better meet this increased demand for taxis."
In response to the fare adjustments, Mr Wee Boon Kim, President of the Comfort Taxi Operators' Association, said: "The last taxi fare adjustment was done some time in late 2007. It has been more than four years and like most Singaporeans, our drivers too look forward to annual improvements in their take-home income so as to provide a better life for their families. Unfortunately, most of our drivers' income has remained flat over the last two years due to rising costs. This adjustment is therefore timely and fair to help our drivers improve their earnings."
Mr Robin Lim, President of the CityCab Operators' Association, added: "The cost of driving a taxi has gone up since January 2011 with higher diesel prices. The fare adjustment will help our drivers mitigate part of these cost increases as well as help them keep pace with the overall rising inflation costs experienced by Singaporeans over the last few months."
Some of the proposed taxi fare changes are as follows:
1. Extending City Area Surcharge to Sundays and Public Holidays

City Area Surcharge
Current	Revised
$3.00 Mon-Sat: 5.00pm-Midnight	$3.00 Mon-Sun and Public Holidays: 5.00pm-Midnight

Following the opening of the Marina Bay Sands Integrated Resort and major shopping centres in the Orchard area over the last four years, demand for taxis has spiked in the City Area in the evenings as well as on Sundays and Public Holidays. To attract drivers back to the City Area where demand is, the City Area surcharge will be extended to Sundays and Public Holidays.
2. Reducing Peak Period Surcharge/Extending Evening Peak to Sundays and Public Holidays

Peak Period Surcharge
Current	Revised
35% of metered fare Mon-Fri: 7.00am-9.30am Mon-Sat: 5.00pm-8.00pm	25% of metered fare Mon-Fri: 6.00am-9.30am** Mon-Sun and Public Holidays: 6.00pm-Midnight

** Not applicable on Public Holidays

As Singapore's population continues to grow, demand for taxi services during traditionally off- peak periods like Sundays and Public Holidays has increased. To better cater to this demand, the peak period will be extended to include these days. The morning peak period will also start at 6.00am instead of 7.00am, while evening peak period will start one hour later at 6.00pm instead.
In light of the extended hours now defined as "peak", the surcharge will be reduced from 35 percent to 25 percent of the metered fare.
As a result, some commuters will see a drop in total fare bill while others will experience an increase. For example, commuters who take taxis between 5.00pm and 6.00pm will see a 21 percent or $2.60 reduction in taxi fares for a 10km trip while those who take taxis in the extended peak hours will experience an increase of about 33 percent or $3.00 for a similar
10km trip.
3. Reducing Booking Fees/Extending Peak Period Booking to Sundays and Public Holidays

Current Booking Fees
Current	Revised
Peak Period: $3.50 Mon-Fri 7:00am-9:30am 5:00pm-11:00pm All Other Times: $2.50	Peak Period: $3.30 Mon-Fri 6:00am-9:30am** Mon-Sun and Public Holidays 6:00pm-Midnight All Other Times: $2.30

** Not applicable on Public Holidays

With the introduction of SMS and smartphone taxi booking services in the last three years, taxi booking demand has increased significantly. Presently, ComfortDelGro is handling 2.4 million bookings a month, about 47 percent more than 2007. To cater to high booking demand, the peak period will start at 6.00am and end at 9.30am on weekday mornings. The evening peak will last from 6.00pm to midnight daily, including weekends and Public Holidays. To make call bookings more affordable, the current booking fees will be reduced by 20 cents from $3.50 to
$3.30 during the peak period, and reduced from $2.50 to $2.30 at all other times.
In light of the extension of peak period surcharges to weekends and Public Holidays, the $1.00
Public Holiday surcharge will be removed.
4. Increase in Flag Down Fares and Advance Booking Fees

Basic Fares
Current	Revised
Flag down: For 1st km $2.80 (Crown); $3.00 (Sonata) $3.20 (Camry); $3.20 (Limousine) 1km to 10km: $0.20 for every 385m Above 10km: $0.20 for every 330m Waiting time: $0.20 for every 45sec	Flag Down: For 1st km $3.00 (Crown); $3.20 (Sonata) $3.40 (Camry); $3.90 (Limousine) 1km to 10km: $0.22 for every 400m Above 10km: $0.22 for every 350m Waiting time: $0.22 for every 45sec

The flag down, distance and the waiting time fares were last adjusted in December 2007. Since then, taxi drivers have had to cope with higher costs of living as a result of inflation. To help our taxi drivers cope with rising prices, the flag down fares of our normal and hybrid taxis will increase by 20 cents, while the flag down fare of our limousine taxis (ComfortDelGro Limocabs and MaxiCabs) will increase from $3.20 to $3.90. Distances fares will be increased by 2 cents but the meter will move slower.
Advance booking fees will also be increased to $8.00 to encourage more drivers to accept such bookings.
The last taxi fare revision exercise was conducted in December 2007.
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Annex 1 Summary of Fare Adjustments

Current	Revised
Basic Fares
Flag Down - 1st km $2.80 (Crown); $3.00 (Sonata) $3.20 (Camry); $3.20 (Limousine) 1km to 10km: $0.20 for every 385m Above 10km: $0.20 for every 330m Waiting time: $0.20 for every 45sec	Flag Down - 1st km $3.00 (Crown); $3.20 (Sonata) $3.40 (Camry); $3.90 (Limousine) 1km to 10km: $0.22 for every 400m Above 10km: $0.22 for every 350m Waiting time: $0.22 for every 45sec
Peak Period Surcharge
35% of metered fare Mon-Fri: 7.00am-9.30am Mon-Sat: 5.00pm-8.00pm	25% of metered fare Mon-Fri: 6.00am-9.30am** Mon-Sun and Public Holidays: 6.00pm-Midnight
City Area Surcharge
$3.00 Mon-Sat: 5.00pm-Midnight	$3.00 Mon-Sun and Public Holidays: 5.00pm-Midnight
Call Booking Fees
Current Booking Peak Period: $3.50 Mon-Fri: 7.00am-9.30am, 5.00pm-11.00pm Current Booking All other times: $2.50 Advance Booking: $5.20	Current Booking Peak Period: $3.30 Mon-Fri: 6.00am-9.30am** Mon-Sun and Public Holidays: 6.00pm-Midnight Current Booking All other times: $2.30 Advance Booking: $8.00
Limousine Taxi Booking Fees
Current Booking: $8.00 Advance Booking: $16.00	Current Booking: $10.00 Advance Booking: $18.00
Public Holiday Surcharge
$1.00 From 6.00pm on the eve of a Public Holiday to midnight of the day of the Public Holiday	Removed

** Not applicable on Public Holidays.

Annex 2 Fare Comparisons

Cities	Off-Peak Period	Peak Period 10km taxi trip
Cities		10km taxi trip		Peak Period 10km taxi trip
Singapore	S$9.80	S$12.30
Hong Kong	S$14.50	S$14.50 (no peak)
Sydney	S$38.00	S$38.00 (no peak)
London	S$40.15	S$47.00

Background

ComfortDelGro is the world's second largest publicly-listed land transport company with a total fleet size of more than 46,300 buses, taxis and rental vehicles. It operates in seven countries - Singapore, China, the United Kingdom, Ireland, Australia, Vietnam and Malaysia - giving it the broadest footprint amongst its international peers. Currently, overseas ventures account for 42.0% of Group revenue. The Group aims to derive 70% of its total revenue from overseas in the medium term. ComfortDelGro is also the largest taxi operator in Singapore. Its taxi companies, Comfort Transportation and CityCab manage a fleet of about 15,700 taxis.