HDT Singapore Shuts Electric-Taxi Business Due To Covid-19 Impact
With the Covid-19 pandemic and the change in work arrangements, 2020 has been a tough year for taxi companies in Singapore.
The impact caused by the coronavirus proved to be too much for electric-taxi company HDT, who announced that they will soon be exiting the taxi business in Singapore.
Thankfully, affected workers will receive retrenchment benefits to tide over these difficult times.
HDT Singapore’s taxi business sees revenue fall by more than 50%
According to Channel NewsAsia (CNA), HDT will pull the plugs on its electric-taxi business on 18 Dec due to the “prolonged debilitating impact” brought about by the Covid-19 pandemic.
In particular, work-from-home arrangements and restricted travel have been identified as key factors that have impacted the company most.
Since the pandemic, revenue has reportedly dipped by more than 50%.
The taxi company, which obtained its full-fledged taxi service operator license in 2018, will be restructured to focus on other areas of business like:
- Electric buses and trucks
- Leasing of electric vehicles
All 94 employees to receive retrenchment benefits
94 employees are expected to be affected as a result of the closure, comprising 90 taxi drivers and 4 staff members.
However, all of them will receive retrenchment benefits, including a month’s salary – on a prorated basis – for every year that they’ve worked in the company, reports The Straits Times (ST).
Additionally, drivers will reportedly receive their Annual Wage Supplement and have their Medisave topped up till the end of 2020.
In a Facebook post on Friday (27 Nov) Senior Minister of Transport Amy Khor also said affected drivers can also join HDT’s private-hire car or bus arms. They may also join other taxi operators or transport companies.
Despite the circumstances, HDT managing director expressed gratitude for his employees for their “professional contributions”, and sticking through with the company during these unprecedented times.
Hope affected employees finds employment
The shutting of HDT’s taxi business is yet another reminder of the dire impact Covid-19 has had on our economy.
We’re heartened by HDT’s dedication to help their employees through these difficult times despite the tough hand that they’ve been dealt.
We hope affected staff will find gainful employment in other sectors or companies to support themselves and their families through the pandemic.
Have news you must share? Get in touch with us via email at email@example.com.
Featured image adapted from Facebook.