Slower private-hire car growth to bring taxi segment's stability

The growth of rental cars slipped to 34% after a surge of 76% in January 2017.

Despite competitive pressures, Singapore's taxi segment is set to see stability for the next six to 12 months, UOB Kay Hian said.

According to a report, this is indicated by the slower growth of private-hire car fleets.

As of the latest LTA data, the growth of rental cars has tapered to 34% YoY in November 2017, against January 2017 where growth surged by 76% YoY.

The total industry taxi fleet has also shrunk 18% to 23,439 taxis as at November 2017 from the peak of 28,736 in December 2014.

Moreover, the proposed alliance of ComfortDelGro Corporation (CD) and Uber could also help bring market stability, UOB Kay Hian analyst Thai Wei Ying said.