You won't believe this is how fierce the new taxi standard is

Operators failing twice won't expand their fleet.

According to Nomura, taxi operators are measured by 2 indicators: 1) % of taxis on the road during peak hours, and 2) % of taxis with minimum daily mileage of 250km. The standards are phased in across 2013-2015, with the standards increasing each year.

Here's more from Nomura:

Note that the taxi availability standards will be applied to individual taxi operators based on their respective fleet size. We imagine this means a lower standard for the smaller operators, just like what we see for the Quality of Service (QOS) standards currently applied to taxi operators.

Carrot for taxi operators

Picking up passengers: to allow taxi drivers to pick up/drop off passengers along all roads within CBD except for those with bus lanes (during their operation hours) and certain roads which are dangerous to stop at.
Matchmaking drivers: LTA to set up online portal to help match hirers looking for relief drivers. Also be used to disseminate info relevant to Taxi Driver’s Vocational License holders.
Show them the money: Give 50% off TDVL renewal fee, equivalent to S$20 over 3 years. Waiver on certain modules of the mandatory refresher course.

Stick for taxi operators

Financial penalty: None for the first 6 months if fail to meet standards. LTA will review in June 2013
Fleet growth restriction: If operators don't achieve 4 out of 6 “Passes” over a 6-mth period, they will not be allowed to expand their fleet in the same 6-mth period next year. Overall growth rate will still be capped as 2% p.a.

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