Starting January 1, 2024, all Comfort taxi drivers will be required to pay 7 percent of the fares they collect from rides booked through the app or phone, which is an increase from the current 5 percent.
This comes shortly after Comfort increased prices to assist taxi drivers with their increased operating costs. Taxi fees were increased earlier, the beginning fare for a Hyundai i40 taxi went up from $3.90 to $4.40, while for a Toyota Prius or a Hyundai Ioniq Hybrid cab, it climbed from $4.10 to $4.60. The charges for distance travelled and wait times have increased by one cent to 26 cents for every 400m below 10km, and every 350m beyond 10km.
Comfort cited the reason for the increase in commissions as an increase in operating costs, especially in technology maintenance, system upgrading, and higher financial charges for cashless transactions.
To alleviate the financial burden on drivers, Comfort will not charge any commission fees for fulfilled bookings with prices of $9 and lower, except the platform cost and cashless administration fee, from January 1 to March 31, 2024.
The 2% rise in commission is quite considerable. A driver will pay $1.05 in commission based on a $15 charge, which is 30 cents more than the current amount. If he does 20 rides like that, he’ll have to pay $21 instead of $15, which is $6 extra per day. $6 can be used to pay for a lunch.
Naturally Taxi Hirer will not be happy about the increase in Commission that eats into their earnings. Comfort stated that it implemented an updated loyalty program in April. The new system offers improved benefits, including additional rental-free days and lower rental rates.
The taxi population has dropped steadily from a peak of 28,000 taxis in 2014 to just 14,000 taxis on the road now. This is clear indication Taxi hirers are finding taxi unattractive. Do you think the Taxi companies are losing ground to the Private-Hire Platforms?