MS Investigates: The ‘war’ between taxi drivers in Phuket
On 12 April 2024, some tourists in Phuket got on a ride they had hailed from an app.
En route to their destination, two local drivers of tuk-tuks (a widely used form of urban transport in Thai cities) stopped their vehicle in the middle of the road.
An argument ensued with the app driver, which escalated further when one of the tuk-tuk drivers circled to the back and smashed the rear window with his fist.
Source: ศูนย์ข้อมูลภูเก็ต Phuket Info Center on Facebook
More recently, a separate assault on another app driver left him with a fractured skull.
These two incidents are among numerous cases involving confrontations between local cab drivers in Phuket and their competition.
This then begs the question: What’s with the beef?
Certain reports dating back to about a decade ago have gone so far as to say that Phuket is home to a “taxi mafia” — which local drivers have often sought to debunk.
What is Phuket’s “Taxi Mafia”?
Phuket is one of Thailand’s hottest destinations for tourists.
However, unlike Bangkok, the coastal city still doesn’t have a robust public transport system, meaning that the business of getting people around can be very lucrative.
Some savvy entrepreneurs have taken advantage of this opportunity to establish local associations of cab drivers that have exclusive rights to tourist hotspots.
The term “Taxi Mafia” refers to these associations that control areas frequented by tourists. These include:
- Phuket International Airport
- Rassada Pier (which connects Phuket to Phi Phi Island)
- Various hotels
Cases of somewhat “thuggish” territoriality have been reported in these areas over the years.
For example, in September 2022, a group of four travellers were forced off a van they had booked to pick them up at Rassada Pier after enjoying their time on Phi Phi Island.
The men who stopped the van belonged to a group called Rassada VIP Group, a local taxi association with a stand at the pier.
They believed that they were the only group legally permitted to operate in the area, so they thought they were just enforcing the law.
However, Bolt, the app which the travellers used, had also been legalised. This was announced on the day of the incident.
Two days after the incident, the pier also put up a sign indicating that no taxi group had exclusive rights to operate around the pier.
A high, but legal fare seen as unfair by tourists
There have also been instances where such associations charged higher fares than what is expected by travellers.
In 2022, a Bangkok native visiting Phuket was shocked when the fare he negotiated with a taxi at the airport stand was three times higher than what he would get from an app-hailed ride.
The price he got from the app was ฿168 (~S$6.17), but the local taxi wanted ฿600 (~S$22) for the same trip. Even more shockingly, this was a step down from the initial asking price of ฿800 (~S$29.40).
The app driver, which the Bangkok native had been in contact with, had also allegedly asked his customer to cancel the ride for fear of getting into trouble with the local taxis.
Despite being seeming unfair to many, the high fares are legal, and there is little to no competition to serve as alternatives.
That’s because, according to The Phuket News, only two taxi associations were allowed to operate in Phuket’s only airport:
- Phuket Maikhao Sakhu (ภูเก็ต ไม้ขาว สาคู)
- Phuket Business Car Service Cooperative Limited (สหกรณ์บริการรถยนต์บริการภูเก็ต จำกัด)
The two taxi associations must, of course, pay hefty concessions to have exclusive rights to operate within the airport.
In 2013, ThaiPBS reported that these associations pay 1.5 million baht (~S$55,488) a month for those rights.
Tensions at the Phuket airport
However, since 1 Sept 2023, Grab is now available as an alternative at the Phuket International Airport. According to netizens, it is reportedly priced at the same rate as the local taxis.
Source: Grab
The Thai Government is currently exploring more apps permitted to operate within the airport.
However, Grab’s presence at the airport has not been quietly accepted by taxi associations.
On 7 September 2023, one of the taxi associations with rights to operate within Phuket International Airport issued a complaint to the local Government.
Mr Chukiat Panyawai, President of Phuket Business Car Service Cooperative Limited, said that his drivers were suffering financial difficulties after Grab started operating at the airport.
Drivers used to make at least three trips from the airport daily, he said. But now they sometimes struggle to even get one trip because people prefer using Grab.
The taxi association president requested that the Government lower the steep concession fees.
He also urged authorities to give drivers automatic contract extensions without the need to bid.
Taxi associations oversee different areas in Phuket
Much like the model set up at the airport, many local associations have established similar stands across the famous island.
With some exceptions, these associations are often hyperlocal.
The Rassada VIP Group mentioned above, for example, is exclusively made up of locals from Moo 7 Rassada, a sub-district of Phuket.
Source: Phuket Times ภูเก็ตไทม์ on Facebook
There’s also the Karon Tuk-Tuk Association (กลุ่มตุ๊กตุ๊กตำบลกะรน) that oversees minivans, buses, taxis, and of course tuk-tuks that operate in the resort town in western Phuket.
In an interview with Phuketwan in 2009, Mr Porntep Chamkawn (พรเทพ ชามขาว), who was the head of the Karon Tuk-Tuk Association then, said that tuk-tuk drivers from other areas of Phuket were not allowed to pick up customers within Karon.
They would be asked to leave, he said, while implying that things could get violent if demands were not met.
‘Turf wars’ do happen on occasion as well. In 2013, the Karon Tuk-Tuk Association created a blockade with their vehicles after a rival group run by foreign nationals undercut their prices.
Why do these associations exist?
Based on reports, Phuket’s taxi associations are fiercely protective of both their territories and their prices.
Source: ศูนย์ข้อมูลภูเก็ต Phuket Info Center on Facebook
The reason for this is so that local taxi drivers can make a living, a taxi driver associated with the Rassada VIP Group said in an interview.
Even back in 2009, the head of the Karon Tuk-Tuk Association told Phuketwan that the higher fares coincided with the high costs of tuk-tuk vehicles.
Drivers have to buy their own vehicles, which may be as expensive as 1.2 million baht (S$44,300).
The financial situation of taxi drivers in Thailand
A survey conducted by the University of the Thai Chamber of Commerce in 2022 dives into the financial situation of taxi drivers in Thailand.
Of 122,356 drivers surveyed, fewer than 40% own the vehicle they drive. Of the ones who do own their own vehicle, most still have to pay in instalments of about 17,000 baht (~S$630) per month.
Most drivers are in their 40s, and around 46% of all drivers will work 20 to 25 days a month.
Meanwhile, almost 30% will work every day.
The average daily income before expenses is just over 1,700 baht (~S$63) per day.
Source: Phuket Times ภูเก็ตไทม์ on Facebook
The study also asked taxi drivers if they used ride-hailing apps to find customers — which only 35% of respondents do.
Those who do not use apps cite higher costs or difficulties in navigating the app.
With regard to present fares, almost a quarter of drivers say that the current starting rate is unacceptable. Around half think that the starting fare should be raised from 35 baht (~S$1.3) to 46 – 50 baht (~S$1.7 – S$1.85).
Problems faced by taxi drivers
The survey also asked drivers about their biggest challenges.
The leading issues included increasing competition — especially from rideshare vehicles that weren’t taxis.
Although there are plenty of stories of customers complaining that taxis would not take them or would cancel their ride on apps, drivers face similar problems from customers as well.
Sometimes, customers would double-book and only take the car that gets to the pick-up point first – meaning that the driver could potentially be stuck in serious traffic with no customers nearby.
The problem is only made worse by increasing gas prices, another major challenge cited by drivers in the study.
As of 26 July 2024, gas prices range between 30 baht and 50 baht (S$1.10 and S$1.90) per litre.
All of these issues are potentially why Phuket’s taxi associations have clung desperately to their established monopoly of certain areas for so long.
Taxi issue in Phuket has become internationally known
Because of these monopolistic practices, the local Phuket Government has been subjected to multiple instances of public and international pressure over the past 10 years.
Source: X
In 2013, a group of European envoys made a list of things that Phuket needed to do, which included developing a fairly priced public transport system and an end to intimidatory behaviour by tuk-tuk and taxi drivers.
About two years later, Irish ambassador Brendan Rogers said he “might just walk” when he was confronted with a 500 baht (S$18.60) fare from Kata to Karon — the two areas are about a kilometre away from each other.
The army stepped in to make changes in 2014. However, many of its edicts remain unmet today.
One of these edicts was the removal of taxi concessions at the airport, something that still exists.
Despite the army’s declaration that metre taxis would be the future for Phuket, many drivers still insist on negotiating a set fare.
Getting around Phuket as a tourist
As of 2024, there are still stories about local tuk-tuks and taxis charging high fares and using intimidation tactics to enforce them.
However, tourists can still have a good time — as long as they have the know-how and a bit of perseverance.
First, it is a good idea to have multiple rideshare apps to cross-check prices. Apps popular with locals include:
- Bolt
- inDrive
- Grab
Second, many netizens recommend using the Phuket Smart Bus. The fixed fare of 100 baht (S$3.70) to get to any popular stop is much cheaper than a private car ride.
The ride will be a bit more cramped and take a bit longer, but it’s a no-brainer for those on a budget.
Those confident enough in their driving, and brave enough to try Thai traffic, can opt to rent a car or motorbike. Just make sure you have an international driver’s license and most importantly, drive responsibly.
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Feature image adapted from Phuket Times ภูเก็ตไทม์ on Facebook and ศูนย์ข้อมูลภูเก็ต Phuket Info Center on Facebook.
