On Friday, the Land Transport Authority (LTA) announced that they will not extend the trial for delivery services by taxi and private-hire car drivers after three years.
This decision is due to the limited uptake and the necessity to safeguard the supply of taxi and private-hire cars.
Therefore, taxi and private-hire car drivers will no longer be allowed to deliver food or goods.
The new norm will be in effect from 1 April 2023.
A bit of History
On March 29, 2020, LTA temporarily lifted a rule to support P2P drivers during the Covid-19 pandemic as income from taxi and ride-hailing trips dried up.
Due to Covid-19 restrictions, demand for delivery services surged, resulting in a shortage of delivery slots at the time as most people turned to deliveries.
The temporary lifting of the rule was part of the delivery services trial, which was initially meant to last for three months. LTA extended the trial four times to provide alternative income sources for drivers as ridership gradually recovered.
The most recent extension occurred in November 2022.
Initially, the temporary liberation of regulations to allow taxi and private-hire drivers to do delivery was slated to finish by the end of June 2020.
Minister of Transport Khaw Boon Wan announced the extension and explained the rationale through his Facebook.
He stated that he expects the demand for home deliveries to remain high as the circuit breaker is gradually eased from June.
He also noted that home deliveries have become a new norm for many, including his own family.
For Drivers and Businesses
Minister Khaw also said the extension will help supplement the income of these drivers as well as meet the needs of merchants and residents.
It is a win-win all around.
Currently, more than 10,000 private-hire and taxi drivers are tapping into the new regulations to carry out delivery services. GrabFood and GrabExpress are one of the most popular delivery services that many drivers have signed up.
Minister Khaw also mentioned that they will closely monitor the ground to ensure that consumers of traditional taxi/PHC services, i.e. for commuting, are not marginalised.
This is to ensure that those who are returning to work post-circuit breaker, to help re-open the economy, are well served in a timely way.
SIRS Scheme for Private-Hire
Private-hire and taxi drivers who are self-employed can also tap on the Self-Employed Income Relief Scheme (SIRS). Those who are eligible can receive up to $9,000 from the government.
Learn how to apply for SIRS.
If you have not applied, you can do so now as the first batch of payments for those eligible are already scheduled to be paid out by 27 May 2020.
Saving on your Car Insurance
If you are using your own car for private hire, it may be time for you to rethink if you still want to carry on. Get a quote for our normal private-car insurance and see how much you can save compared to your Z10 Commercial Insurance.
