Trans-Cab Cuts Taxi Rental Costs By 34% Not Out Of Goodwill – This Is The Reason Why

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Cheaper To Rent From Trans-Cab

Good tidings for aspiring cabbies: Trans-Cab is slashing daily rentals by up to 34% for cabbies who operate without relief drivers from Jan 1.

Perhaps this will help mitigate their situation of having excess cabs (don’t worry, we’ll talk about that later).

Trans-Cab’s rental will go as low as $59.50 (before GST) for a Toyota Wish, a 34% decrease from the current rate of $90.

Subsequently, a Renault will be available at $88.50, from its current rate of between $114 and $125, while rentals for Trans-Cab Chevrolet models will be cut to between $66 and $72, from its present rate of between $94 and $101. The new rates apply to both new and existing drivers.

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Good For Cabbies

Competitor SMRT also recently offered a limited promotion for new drivers; they received free rental for two weeks and a 50% discount on rental for the next five and a half months.

The move adds to the positive news for cabbies since the Land Transport Authority (LTA) announced that it is scrapping the minimum 250km daily mileage for taxi drivers across the island, also effective from January.

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Comfort Unmoved

On the other hand, ComfortDelGro, Singapore’s largest taxi company, has not followed suit and cut their rentals yet.

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We asked a ComfortDelGro cabbie what he and his colleagues think about the adjustment, and they said they feel relatively unaffected by Trans-Cab’s rent decrease, and cite ComfortDelGro’s partnership with large corporations as providing a reliant and consistent source of income.

Some companies who have staff claiming reimbursement for their cab fares only accept receipts from Comfort and CityCab taxis.

The cabbie we spoke to and his friends have no plans to switch companies at this point.

Unused Cabs

Trans-Cab’s general manager Jasmine Tan said the decision to reduce rental rates is to lighten the burden on their one-man operation drivers.

But the rent decrease may also merely be Trans-Cab’s attempt to increase the take-up rate of their cabs.

After all, the move comes in the wake of a video posted on Thelocalsociety that showed rows and rows of lonely, unused Trans-Cab vehicles. 

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Those idle taxis surely aren’t making them any money.

Will It Help?

Sure, lowering rental rates would lighten their drivers’ burden but to what extent? We don’t see how it would draw customers in or prevent them from using third-party apps like Uber and GrabCar.

Now, cutting taxi fares as well that would draw customers back. Another idea for ComfortDelGro?

Featured image from flickr

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