The new framework could only provide short time relief for taxi firms.
The Land Transport Authority's Private Hire Car Driver’s Vocational Licence (PDVL) framework could provide some relief for taxi companies, but not for long.
According to RHB analyst Shekhar Jaiswal, the implementation of the PDVL framework should provide short-term relief for taxi companies. However, he noted that a delay in creating a level playing field between the private hire cars and taxi companies does create a downside risk for the latter.
"As the PDVL limits the addition of new drivers by PHC companies, we believe Uber and Grab Singapore may choose to target the large pool of taxi driver vocational licence holders, thereby leading to an eventual shortage of taxi drivers," he said.
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