All the different ways to take a private-hire car

May 25, 2017 11.00AM |
 

by Sharanya Pillai

PRIVATE-HIRE cars are now the rage on Singapore’s roads. Thanks to the likes of Uber and Grab, the number of chauffeur-driven private cars in Singapore is at an all-time high of over 40,000, The Straits Times reported yesterday (May 24). This is a 70-fold increase from 2013, when the ride-hailing disruptors first entered the scene. 

The taxi industry is facing stiff competition, given that the number of private-hire cars is now 1.5 times the number of taxis. The bulk of the increase comes from passenger cars that are converted into commercial ones via Grab and Uber. We look at the ways anyone can ride a car now:

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1. Economy and luxury cars

Ride-hailing apps Grab and Uber offer private rides on different price levels. Uber comes with the choice of UberX, regular economy cars, or UberExec, which offers models such as the Audi A3 and BMW 3-Series.

Similarly, GrabCar has two price ranges: Economy and Premium. For an extra $2, you can also hire a GrabFamily car, that comes with a booster seat for a child.

Both companies also offer SUVs that can seat up to six people.

2. Pool for a lower price

Sharing a ride isn’t just in vogue for late-night TV hosts, but also for budget-conscious customers. Uber rolled out the ride-sharing service UberPool last June, which matches passengers travelling along the same route, for a cheaper fare. Last year, one in every three UberX rides was pooled.

Not to be outdone by its rival, Grab launched a similar service, GrabShare, in December. One difference is that Grab only allows for two bookings to be pooled – minimising interruptions to the journey.

3. Get social with strangers

Grab’s social carpooling service GrabHitch lets customers share the ride with drivers heading to the same destination. Unlike the other services, GrabHitch is marketed as a “social” platform to meet new people, where customers are encouraged to take the front seat and talk to the drivers – not really for those who might prefer a quiet ride.

Another carpooling startup, RYDE, also markets itself as a social platform. Like GrabHitch, RYDE customers can choose their drivers, and the fee is determined based on distance. Prices are generally cheaper than regular taxis.

4. Getting the best deal

With the expanding number of choices, it can become difficult to determine which might be the most affordable or value-for-money option. British startup Karhoo was poised to help with that, by offering a ride-booking app that compares prices across all the competitors – but its Singapore office abruptly halted operations last year. For now, it seems like math skills and reading online reviews might be the best way for the budget-conscious.

With all the excitement over the disruption, it may seem like ride-hailing apps are the new royalty on the roads, it doesn’t seem like the traditional taxis are going away anytime soon. In its bid to take over SMRT’s taxi business, Grab faces obstacles in the form of concerns over the jobs of taxi drivers.

The ride-hailing apps may also need to rejig their business models to ensure stability, according to experts interviewed by The Straits Times. While Uber and Grab have tried to “out-discount” each other, offering promotions into the long-term is unsustainable, the experts said. Notably, Uber has been bleeding money at an alarming rate – which raises the question of whether the private car model is truly a profitable model.

But for now, as the incumbents and disruptors compete to dominate the roads, it looks like consumers can continue to benefit from the sweet deals arising.

 

Featured image from TMG file.

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