Singapore - why are Singapore taxis so cheap (affordable)?

This is one of the first things I noticed on arriving in Singapore -- the ride from the airport to city I would normally expect to pay $30-40 US dollars for, and yet it consistently costs no more than SGD $15-20 (I usually just round up to 20).

Yet I understand that gas is not cheap, and car taxes are ridiculously high here.

What is the explanation? Is it a public service helping to make up for where public transport does not serve well, or to make people like Singapore even more??

This is one of the first things I noticed on arriving in Singapore -- the ride from the airport to city I would normally expect to pay $30-40 US dollars for, and yet it consistently costs no more than SGD $15-20 (I usually just round up to 20).

Yet I understand that gas is not cheap, and car taxes are ridiculously high here.

What is the explanation? Is it a public service helping to make up for where public transport does not serve well, or to make people like Singapore even more??

At 700 sq.km. it is not a big place-lah.

This is one of the first things I noticed on arriving in Singapore -- the ride from the airport to city I would normally expect to pay $30-40 US dollars for, and yet it consistently costs no more than SGD $15-20 (I usually just round up to 20).

Yet I understand that gas is not cheap, and car taxes are ridiculously high here.

What is the explanation? Is it a public service helping to make up for where public transport does not serve well, or to make people like Singapore even more??


Singaporeans view the taxi service as a subset of public transport, we certainly understand that there is a premium for the door to door service, but the whole concept of paying for "service" is quite alien to us...

Moreover, Singapore is for the most part well connected, too high a premium could perhaps lead to a precipitous loss in ridership to the "BMW"- Bus MRT Walk :P

But my family has a car, so I hardly take taxis anyway. :P

This is one of the first things I noticed on arriving in Singapore -- the ride from the airport to city I would normally expect to pay $30-40 US dollars for, and yet it consistently costs no more than SGD $15-20 (I usually just round up to 20).

Yet I understand that gas is not cheap, and car taxes are ridiculously high here.

What is the explanation? Is it a public service helping to make up for where public transport does not serve well, or to make people like Singapore even more??

I used a taxi from SIN to Havelock Rd and the taxi trip cost me 24 SGD, and it was more than 10 yrs ago!

Most people including the hotel told me that the totally cost shouldn't be more than 20 SGD.

I saw the driver put some extra $$$ in on the meter and explained it was so sort of late surcharge (we arrived SIN around 11pm). On the way back, same thing happened (it was 6am in the morning), and the other taxi driver said that because we got on the taxi from a hotel then he put in some surcharge.

How do I know what they are allowed to charge?

...But my family has a car, so I hardly take taxis anyway. :P

So sorry to you -lah!

I used a taxi from SIN to Havelock Rd and the taxi trip cost me 24 SGD, and it was more than 10 yrs ago!

Most people including the hotel told me that the totally cost shouldn't be more than 20 SGD.

I saw the driver put some extra $$$ in on the meter and explained it was so sort of late surcharge (we arrived SIN around 11pm). On the way back, same thing happened (it was 6am in the morning), and the other taxi driver said that because we got on the taxi from a hotel then he put in some surcharge.

How do I know what they are allowed to charge?

All the taxis have the surcharge on the fare chart. All the charges that you encountered are proper surcharges.
IMHO SIN have the most honest taxi driver on earth. I guess they don't want to deal with the "God of no Mercy".

I used a taxi from SIN to Havelock Rd and the taxi trip cost me 24 SGD, and it was more than 10 yrs ago!

Most people including the hotel told me that the totally cost shouldn't be more than 20 SGD.

I saw the driver put some extra $$$ in on the meter and explained it was so sort of late surcharge (we arrived SIN around 11pm). On the way back, same thing happened (it was 6am in the morning), and the other taxi driver said that because we got on the taxi from a hotel then he put in some surcharge.

How do I know what they are allowed to charge?

There are plenty of extra charges - but Singapore has a name of a 0 cheat policy, I've never had an attempted scam (I'm a foreigner but know SIN pretty well) with using taxis. Regarding the surcharges, check here please:

http://www.taxisingapore.com/taxi-fare/

Yes, plenty of them.. and some of them sound quite special.. I've not had that many drives without a surcharge, in fact I'm not sure if I ever had one :D Still, taxis in SIN are quite affordable compared to other developed countries.

Can cheap lah! :D

btw, make sure to get yourself a "Taxi app" for your smartphone, as the time when taxis are mostly needed, just after MRT service has stopped (around 12pm-1am) you might have to wait for an hour at a hotspot to catch one. By simply ordering online (or by phone) one, they'll send you one over (of course that's an extra surcharge ;) ) which is just for you. Made some poor people watching in surprise as the foreigner took the cab they thought was for them :D

I used a taxi from SIN to Havelock Rd and the taxi trip cost me 24 SGD, and it was more than 10 yrs ago!

Most people including the hotel told me that the totally cost shouldn't be more than 20 SGD.

I saw the driver put some extra $$$ in on the meter and explained it was so sort of late surcharge (we arrived SIN around 11pm). On the way back, same thing happened (it was 6am in the morning), and the other taxi driver said that because we got on the taxi from a hotel then he put in some surcharge.

How do I know what they are allowed to charge?

The surcharges where subsequently added/raised in the recent years and the price of a taxi ride is significantly higher than a few years ago.
If Iam unsure why a surcharge is added on the meter I usually ask the driver. There is a sticker on the side window or door which is explaining the farestructure and surcharges to crosscheck. Its sometimes frustrating to learn how many surcharges there are.
Cab drivers in Singapore are generally honest.

Singaporeans are constantly complaining regarding the various surcharges. Especially the night surcharge is often in the spotlight. Cabbies are often accused not taking passengers shortly before midnight and wait until the can charge this as well.

I used a taxi from SIN to Havelock Rd and the taxi trip cost me 24 SGD, and it was more than 10 yrs ago!

Most people including the hotel told me that the totally cost shouldn't be more than 20 SGD.

I saw the driver put some extra $$$ in on the meter and explained it was so sort of late surcharge (we arrived SIN around 11pm). On the way back, same thing happened (it was 6am in the morning), and the other taxi driver said that because we got on the taxi from a hotel then he put in some surcharge.

How do I know what they are allowed to charge?

Actually this sounds about right. I live close to the Holiday Inn Atrium (maybe 500m away) and would say that with the airport surcharge the pricing is about right.

I know that the cab driver punching buttons on the meter looks fishy but he's genuinely entitled. At the hour you left the taxi stand in SIN, the only surchage should have been the airport one. As for the hotel people, it's worth keeping in mind that most would either drive their own car or take public transport, thus they wouldn't be aware how much the price has gone up. Many local people who are not regular cab riders are disagreeably surprised by the fare when they see what it is.

To check a fare for accuracy, always ask for a receipt. It documents every cent you paid and what you paid for.

This is one of the first things I noticed on arriving in Singapore -- the ride from the airport to city I would normally expect to pay $30-40 US dollars for, and yet it consistently costs no more than SGD $15-20 (I usually just round up to 20).

Yet I understand that gas is not cheap, and car taxes are ridiculously high here.

What is the explanation? Is it a public service helping to make up for where public transport does not serve well, or to make people like Singapore even more??

There is no minimum wage in Singapore and an almost limitless supply of Bangladeshi, Myanmar, Indian, Chinese and Filipino cheap labour so people (including taxi drivers) have to work for almost nothing to survive.

In some case people have full time jobs Monday-Friday and supplement their income by driving taxis on weekends. The taxi car is often shared between two oro more taxi drivers. I met a Procurement Manager who drove a taxi on weekends to allow him to provide a decent standard of living for his family.

BTW there is very much an attitude of doing as many jobs as it takes to support their family. Not the benefit culture that we seem to have in the UK where many (though definitely not including genuine claimants) have the opinion that unless they can secure a high paying the job of their choice, the state owes them a living.

In some case people have full time jobs Monday-Friday and supplement their income by driving taxis on weekends. The taxi car is often shared between two oro more taxi drivers. I met a Procurement Manager who drove a taxi on weekends to allow him to provide a decent standard of living for his family.

BTW there is very much an attitude of doing as many jobs as it takes to support their family. Not the benefit culture that we seem to have in the UK where many (though definitely not including genuine claimants) have the opinion that unless they can secure a high paying the job of their choice, the state owes them a living.

On the other hand, for Singaporean citizen with low income, the state will pay for additional education so that they can find better jobs. SG got a quite good situation, as it's allowing to profit from low foreign labor costs to build infrastructure just like China, but on the other hand having just a relatively small population which can benefit. Well, they're doing quite a good job, and it's no surprise that their currency, together with the Swiss Franc, Australian $ and Norwegian Krone is one of the very few that stand steady in the economical turmoil which is happening.

I thought Taxis are shared in most countries. At least I know that in Germany and Switzerland, most taxis are shared and in operation 24 hours. And taxi driver in both of them are low-very low paid jobs, in Switzerland even lower than what you earn as a cashier in a supermarket usually. Singaporean taxis are making their income with quantity, in Europe it seems more to be high prices (won't call it quality, as I've found taxis in Singapore to be more friendly and drivers having more knowledge about places/roads to take) to make their living.

Because its an efficient operating model. The taxi operating companies negotiate good fleet prices on stripped down cars from the manufacturers and rent them out to the drivers for S$90 a day (or around S$150 a day for the limo cabs). Taxi utilisation in Singapore is relatively high, and the average driver collects S$300 for a 10-hour shift, which means they clear around S$150 a day after costs, often more because many taxis are driven by 2 drivers in 2 shifts, splitting the rent. Average taxi driver monthly income (after costs) is S$4k-6k a month, which is a decent wage for Singapore.

Is it a hard life for the drivers? Sure. Do they work for nothing to survive? No.

Because its an efficient operating model. The taxi operating companies negotiate good fleet prices on stripped down cars from the manufacturers and rent them out to the drivers for S$90 a day (or around S$150 a day for the limo cabs). Taxi utilisation in Singapore is relatively high, and the average driver collects S$300 for a 10-hour shift, which means they clear around S$150 a day after costs, often more because many taxis are driven by 2 drivers in 2 shifts, splitting the rent. Average taxi driver monthly income (after costs) is S$4k-6k a month, which is a decent wage for Singapore.

Is it a hard life for the drivers? Sure. Do they work for nothing to survive? No.

S$4K - S$6K seems very high. Even with your amount of S$150 per day after costs they would need to work 30 days / month to make S$4,500. That's called slave labour in more civilized parts of the world! A more normal work month (22 working days) would get them around S$3,300 which is also much higher than the amounts that have been mentioned to me by taxi drivers in Singapore (S$1,500 - S$2,500)

S$4K - S$6K seems very high. Even with your amount of S$150 per day after costs they would need to work 30 days / month to make S$4,500. That's called slave labour in more civilized parts of the world! A more normal work month (22 working days) would get them around S$3,300 which is also much higher than the amounts that have been mentioned to me by taxi drivers in Singapore (S$1,500 - S$2,500)

I think you need to get your numbers lowered down a bit. 4500S$ is called "slave labour" in your eyes? Even in Eastern Germany, I doubt many people are earning more than that - even if you take S$3300, that's still around 1800€ - and the taxes aren't anything as high as in most western countries.

Sure, SG taxi drivers won't earn a fortune, but their income isn't that horrible either. Taxi drivers are in almost all countries I know on low to very low paid jobs compared to the average income in that country..

I think you need to get your numbers lowered down a bit. 4500S$ is called "slave labour" in your eyes?

No, but a 30 day work month is.

Cabbies in SIN are usually working a 6 days week and 12 hour shifts. Thats 25-26 days per month. The majority of them is taking their off-day between monday and wednesday. The reality is that most of them earn in between 1500 and 2500 SGD rather than 3000 to 4500 SGD after cost which is not really that much.
While the feeling is that during peak-hours it is almost impossible to find a cab in Singapore, the reality is that during off-peak hours competition is dense. Probably some of you noted the long cew of taxis waiting for costumers at the airport or at shopping centers.
During the economy downturn the government offered tax-rebates to cab-drivers to support them a bit.

S$4K - S$6K seems very high. Even with your amount of S$150 per day after costs they would need to work 30 days / month to make S$4,500. That's called slave labour in more civilized parts of the world! A more normal work month (22 working days) would get them around S$3,300 which is also much higher than the amounts that have been mentioned to me by taxi drivers in Singapore (S$1,500 - S$2,500)

S$150 per day after costs is the lower end (Assuming a single driver. Adding a second driver shirt saves them an addiotional S$45+ on the daily rent). Cabbies generally work around 25 days a month.

Income tax is extremely low compared to other countries (S$550 on the first S$40,000, less than S$3000 on S$72,000 if you take the upper range of cabbie earnings).

This is all closely based on actual data with some rounding, not hearsay from the backseat of your cab. :rolleyes:

Yes, there are those who make less. And often those are the ones that make the most noise.

...
While the feeling is that during peak-hours it is almost impossible to find a cab in Singapore, the reality is that during off-peak hours competition is dense. Probably some of you noted the long cew of taxis waiting for costumers at the airport or at shopping centers.
...

By nature, people form opinions on what they observe, and not on hard data. The average taxi's utilisation during a normal day is quite high, but 90% utilisation over a 10 hour shift still means they're waiting for a fare at a stand for at least an hour.

The system of surcharges may be confusing to the common man, but in reality it is a extremely efficient way to match demand to supply using a combination of Economics 101 and Operations 101. The airport is an unusual case when it comes to waiting times, and there is some improvement yet to be done there.

By nature, people form opinions on what they observe, and not on hard data.

I would be happy to see the "hard-data".

I would be happy to see the "hard-data".

+1

Cabbies in SIN are usually working a 6 days week and 12 hour shifts. Thats 25-26 days per month. The majority of them is taking their off-day between monday and wednesday. The reality is that most of them earn in between 1500 and 2500 SGD rather than 3000 to 4500 SGD after cost which is not really that much.
While the feeling is that during peak-hours it is almost impossible to find a cab in Singapore, the reality is that during off-peak hours competition is dense. Probably some of you noted the long cew of taxis waiting for costumers at the airport or at shopping centers.
During the economy downturn the government offered tax-rebates to cab-drivers to support them a bit.

I am sorry but this is not true. Some taxis in Singapore have a two crew operations. Meaning a 12hour shift per crew. They can take off but if they were to take off, it means rental still has to be paid. As for taxi drivers' real income, it varies on how hard they work.

Why the airport and shopping malls, they can take a break while waiting and there is a steady queue on taxis.

I would be happy to see the "hard-data".

Wouldn't everyone? The reality is that corporations pay consulting firms to gather the data and then have the rights over distribution of that data.

I am sorry but this is not true. Meaning a 12hour shift per crew. They can take off but if they were to take off, it means rental still has to be paid. As for taxi drivers' real income, it varies on how hard they work.
Sorry what did I say isn't true?

Some taxis in Singapore have a two crew operations.
Should say most instead of some.

Why the airport and shopping malls, they can take a break while waiting and there is a steady queue on taxis
While there are maybe some cabbies doing that, most of them queue there because additionally surcharges can be earned. Is still better then cruising around and waste diesel. And as most Singaporeans if they take a break they stop somewhere and eat.



Wouldn't everyone? The reality is that corporations pay consulting firms to gather the data and then have the rights over distribution of that data.
Does that mean your figures are a guess?

...
Does that mean your figures are a guess?

No, but I can't show the data that people are demanding because I don't own it or have the right to distribute it.

S$4K - S$6K seems very high. Even with your amount of S$150 per day after costs they would need to work 30 days / month to make S$4,500. That's called slave labour in more civilized parts of the world! A more normal work month (22 working days) would get them around S$3,300 which is also much higher than the amounts that have been mentioned to me by taxi drivers in Singapore (S$1,500 - S$2,500)

Sjoerd, that's why most Europeans are baffled. Singaporeans (and most Asians) work hard. Read long hours. For most people, 50-60 hour weeks is pretty normal.

FYI - the taxi drivers I speak with don't take off days. They work 7 days a week. SGD4-6k sounds doable. Though I believe the average would be around SGD3k. Taxi drivers can and do put their children through university. So it is not impossible.

Sjoerd, that's why most Europeans are baffled. Singaporeans (and most Asians) work hard. Read long hours. For most people, 50-60 hour weeks is pretty normal.

Most? I am not so sure. In my experience, people in office jobs in Singapore don't work any harder than people in other countries. (I lived and worked in Singapore a few years ago) Arrive late (nobody was in the office before 9am), long lunches and leave as soon as the boss has left seemed to be the norm.... :)

FYI - the taxi drivers I speak with don't take off days. They work 7 days a week. SGD4-6k sounds doable. Though I believe the average would be around SGD3k. Taxi drivers can and do put their children through university. So it is not impossible.

SGD 3K seems to be closer to reality than SGD 4-6K. Not a lot of money if you need to work 6 or 7 days a week, medical insurance is minimal and you don't get a pension. I think the taxi drivers only work so hard because they have to if they want a half-decent standard of living for their family.

Most? I am not so sure. In my experience, people in office jobs in Singapore don't work any harder than people in other countries. (I lived and worked in Singapore a few years ago) Arrive late (nobody was in the office before 9am), long lunches and leave as soon as the boss has left seemed to be the norm.... :)

That's for office worker. There is no extra reward for working harder lah.

Asian who own their own business or has line of work where there is extra reward for hard work are hard working. Taxi driver, Hawker stall owners to name a few.

Asian who own their own business or has line of work where there is extra reward for hard work are hard working. Taxi driver, Hawker stall owners to name a few.

That's no different from non-Asians. People who have their own business or are in relatively low-paying jobs in which they can increase their salary by working more hours generally work hard all over the world.