Two new ride-hailing operators awarded provisional licences in Singapore

TWO new ride-hail service operators – Geo Lah and Trans-cab Services – will enter the Singapore market in 2025.

The news comes as licensed operators of point-to-point (P2P) transport services were announced by the Land Transport Authority (LTA) on Monday (Dec 23), ahead of rule updates to the sector that come into force in 2025.

LTA said that Geo Lah and Trans-cab Services will be awarded one-year provisional licences.

This will allow the operators to fine-tune their operational capabilities to meet regulatory standards for safety and service provision before they are considered for a full Ride-Hail Service Operator Licence, said the regulator.

Existing licencees, including major players in ride-hailing and taxis, will have their respective licences renewed.

More details on the updates were also revealed, which include less stringent requirements in obtaining a taxi driver’s vocational licence and a move to help drivers compare trip data across various platforms.

The updates are the first phase of LTA’s ongoing P2P sector review that aims to stabilise taxi supply, improve the reliability of services and reduce disruptions, and to make sure that the services cater to a wider range of users.

The P2P transport sector includes ride-hailing, taxi and car-pool services. Major P2P service operators with more than 800 vehicles on their platform need a licence to operate and are required to meet LTA criteria such as quality-of-service and safety standards.

Taxi operator Trans-cab Services was founded in 2003. As at October 2024, it has 2,079 taxis, the third-largest fleet in Singapore after Comfort (6,388) and CityCab (2,136).

While it is an existing street-hail operator and its taxi drivers have been providing ride-hailing services on other platforms, Trans-Cab itself does not currently operate a ride-hailing platform.

A company spokesperson told The Business Times that it will be setting up its own ride-hailing platform soon, with the rollout of the platform “nearing completion”, although a date was not specified.

Earlier this year, the proposed acquisition of Trans-Cab by Grab was called off after industry watchdog concerns.

Geo Lah was registered in 2022. Its website indicated that it offers ride-hailing and parcel delivery services through its app. It did not immediately respond to queries from BT.

Licensed to move

Licences issued under the revised framework are effective from Jan 1, 2025.

Street-hail service operator licences will be issued to CityCab and Comfort Transportation (subsidiaries of ComfortDelGro), Prime Car Rental & Taxi Services, Strides Premier Taxi, and Trans-cab Services.

Ride-hail service operator licences will be issued to GrabCar, Ryde Technologies, Tada Mobility, Velox Digital Singapore (Gojek) and CDG Zig.

Car-pool service operator licences will be issued to Grab Car and Ryde Technologies.

More P2P regulations updated

One update to P2P operator rules is more transparency on trip information for drivers. Operators will need to provide a standardised data set to drivers so they can compare it across platforms and facilitate the use of multiple service platforms.

From Feb 24, 2025, the time and money needed to obtain a taxi driver’s vocational licence will also be reduced.

A “streamlined curriculum more relevant to the demands of driving a taxi today” means the total training needed drops to 12 hours from 16 hours. Likewise, the training needed for a private-hire car driver’s vocational licence is reduced to five hours from eight.

The cost of a taxi driver’s vocational licence will be reduced to S$250 from S$275, and the cost to convert a private-hire car driver’s licence to a taxi driver’s vocational licence will drop to S$132.50 from S$145. All prices exclude goods and services tax.

This follows an announcement earlier in December which included new standards for operators that would begin in January 2025, such as managing service disruptions, removal of the call-booking requirement for smaller taxi operators, an extended statutory lifespan and reduced inspections for taxis.

The second phase of the P2P sector review will tackle issues such as whether operators with a larger market share should be subject to higher regulatory standards, and the possibility of a separate Certificate of Entitlement category for private-hire cars. LTA will provide an update on the second phase in March 2025.