Uber-style surge pricing may soon become standard for taxi rides across the board.
Singapore’s transport regulators have decided to allow traditional taxis to charge a fare that fluctuates depending on demand, similar to what Uber and other ride-hailing apps offer.
This is different from the traditional metered fare, that doesn’t take into account live demand.
The decision comes after four taxi operators in Singapore submitted proposals to the city’s Public Transport Council earlier this month, reports say.
It’s worth noting that Uber competitor Grab, has nearly 38.8 percent of Singapore’s taxi fleet, having signed up four of Singapore’s six taxi companies onto its app.
But Comfortdelgro, the largest operator here, will hold off offering surge pricing for now, it said Friday.
Instead, the company plans to offer, in addition to the usual metered charge, a flat fare option that will be available in two to three weeks’ time.
ComfortDelGro is keen on dynamic pricing, but has been approaching the strategy cautiously.
The operator wanted to introduce dynamic pricing for “some time,” but was “not allowed” to, according to The Straits Times.