Taxi Review Report
Introduction
Singapore, an island country with a population of 5 million and a land area of 710 square kilometres 1 is known to have one of the best public transport system in the world. The public transport system is mainly made up of the MRT, buses, LRT and Taxis. Taxis are considered a high end form of public transport as passengers are able to enjoy a more personalised transport service at a premium fare relative to the other forms of transport systems.
With the fast growing population and an increasing number of tourist arrivals, the demand for taxis is increasing at a rapid rate and we foresee there is room for additional taxi operators in the industry.
This Oligopoly market currently consists of mainly 7 taxi operators1 that collectively own a total of 26,000 2 taxis on the road. They are offering the same form of transport service to consumers. In recent years, the industry has been liberalised slightly whereby fares are de-regulated so that individual operators can decide and set their own fares within the stipulated range. New entrants are also allowed as long as they meet the pre-requisite criterias.1
The industry as illustrated via SWOT analysis
Strengths
Singapore’s population tops 5.08 million in Jun 2010 3. Tourist arrivals have also been on a steady increase and we foresee the rising trend to continue owing to Singapore’s latest attractions, the 2 newly completed integrated resorts as well as the Universal Studio Theme Park. With these increasing numbers, the demand of taxi will also increase.
Companies in Singapore announced an average 4.5 % payment increase in 2011 4. With increasing, more people will be willing and be able to afford to take taxis.
The waiting time for taxis has been increasing through the years and many commuters had expressed that they are unable to get a taxi especially during the morning peak hours of 7am – 9am and evening peak hours of 5pm to 8pm.
These illustrate that there is a strong demand for more taxis
Singapore, an island country with a population of 5 million and a land area of 710 square kilometres 1 is known to have one of the best public transport system in the world. The public transport system is mainly made up of the MRT, buses, LRT and Taxis. Taxis are considered a high end form of public transport as passengers are able to enjoy a more personalised transport service at a premium fare relative to the other forms of transport systems.
With the fast growing population and an increasing number of tourist arrivals, the demand for taxis is increasing at a rapid rate and we foresee there is room for additional taxi operators in the industry.
This Oligopoly market currently consists of mainly 7 taxi operators1 that collectively own a total of 26,000 2 taxis on the road. They are offering the same form of transport service to consumers. In recent years, the industry has been liberalised slightly whereby fares are de-regulated so that individual operators can decide and set their own fares within the stipulated range. New entrants are also allowed as long as they meet the pre-requisite criterias.1
The industry as illustrated via SWOT analysis
Strengths
Singapore’s population tops 5.08 million in Jun 2010 3. Tourist arrivals have also been on a steady increase and we foresee the rising trend to continue owing to Singapore’s latest attractions, the 2 newly completed integrated resorts as well as the Universal Studio Theme Park. With these increasing numbers, the demand of taxi will also increase.
Companies in Singapore announced an average 4.5 % payment increase in 2011 4. With increasing, more people will be willing and be able to afford to take taxis.
The waiting time for taxis has been increasing through the years and many commuters had expressed that they are unable to get a taxi especially during the morning peak hours of 7am – 9am and evening peak hours of 5pm to 8pm.
These illustrate that there is a strong demand for more taxis
References: 1.http://www.gist.edu.sg/cmsresource/travel%20conference/land%20transport%20in%20singapore.pdf 2. http://www.lta.gov.sg/corp_info/doc/Taxi%20Info%20for%20LTA%20Website%202011.pdf 3. http://www.singstat.gov.sg/ 4. http://www.averagesalarysurvey.com/article/average-salary-in-singapore/04234524/income.aspx 5. www.taxisingapore.com/taxi-stands/ iHi