In a significant move for the ride-hailing industry, the Land Transport Authority (LTA) has introduced a mandatory three-year lock-in period for newly registered or converted chauffeured private-hire cars (PHCs) owned by businesses. This initiative, effective from 19 February 2024, aims to enhance the stability of vehicles designated for ride-hailing services in Singapore.
Why the Change?
The LTA’s new policy is designed to primarily ensure that businesses acquiring PHCs do so with the intention of leasing them out for ride-hailing services. This is expected to curb the premature conversion of such cars from their designated purpose, thereby securing the supply of vehicles available for point-to-point transport services.
Details of the Lock-in Period
- The lock-in applies to all PHCs that are registered or converted after 19 February 2024.
- It also affects vehicles transferred from individuals to businesses.
- Vehicles with Certificates of Entitlement (COE) issued before this date are exempt from the lock-in requirement.
Transparency and Notification
According to the LTA, an inadvertent information release by their technology vendor resulted in earlier notifications about the lock-in period to some industry players. In the interest of fairness, the LTA moved up the implementation date to coincide with the current COE bidding process.
Implications for Business Owners
Business owners who wish to check if their PHCs fall under this new regulation will receive an acknowledgement field during the registration or transfer process via the OneMotoring digital service. A notification e-letter will confirm the applicable lock-in duration after the transaction is completed.
Statistical Context
As of January 2024, the population of PHCs in Singapore has reached 90,882 units, which marks an 11.2% increase from the previous year’s total of 81,754 units. This growth highlights the rising demand for flexible transport options in the city.
Further Developments
Senior Minister of State for Transport, Amy Khor, indicated that more updates regarding this measure will be presented in Parliament in March 2024, as part of the ongoing review of the point-to-point transport sector.
This policy represents a proactive step towards ensuring the sustainability and reliability of the ride-hailing market in Singapore, as the government continues to monitor and respond to industry needs.