Apps-based Operators or Operators Offering Courier Services Using Private-hire Vehicles and Taxis
Ministry of TransportSpeakers
Summary
This question concerns Mr Ang Hin Kee’s inquiry regarding apps-based operators using taxis and private-hire vehicles (PHVs) for courier services and the progress of regulatory reviews for such activities. Senior Minister of State for Transport Dr Janil Puthucheary clarified that these vehicles are primarily for passengers and cannot carry goods for reward without prior Land Transport Authority (LTA) approval. He stated that while no violations have been found, drivers risk license revocation as the LTA enforces these rules to maintain the availability of point-to-point services for commuters. Senior Minister of State for Transport Dr Janil Puthucheary added that the LTA is open to discussing limited courier trials with operators to evaluate feasibility and service impact. Approved trials would require adherence to safeguards, including ensuring vehicles have the appropriate third-party insurance coverage required under the Motor Vehicles (Third-Party Risks and Compensation) Act.
Transcript
21 Mr Ang Hin Kee asked the Minister for Transport (a) whether the Ministry is aware of apps-based operators or operators offering courier services using private-hire vehicles and taxis; (b) whether LTA checks that such vehicles come with relevant commercial accident insurance; and (c) what is the progress on the National Taxi Association and National Private Hire Vehicles Association's calls for reviewing of regulations that allow their vehicles to do courier services.
The Senior Minister of State for Transport (Dr Janil Puthucheary) (for the Minister for Transport): Mr Speaker, Sir, taxis and private hire cars (PHCs) are meant to carry passengers for hire and reward, and should not be used for the conveyance of goods for reward without LTA's prior approval. This is to ensure that taxi and PHCs remain available to provide point-to-point (P2P) services for commuters. Drivers found violating these rules may have their vocational licenses revoked. Thus far, LTA has not found any driver in violation of these rules. LTA will actively enforce against such offences and will not hesitate to take firm action against the perpetrators.
Taxi and PHC operators that are interested in allowing their drivers to perform courier services on a limited trial basis may approach LTA to discuss such a possibility. LTA will work with them to assess the feasibility of a trial, how it should be scoped to ensure minimal impact on P2P availability, as well as the conditions necessary to safeguard commuter interests, for example, ensuring the vehicles have the appropriate third-party insurance coverage required under the Motor Vehicles (Third-Party Risks and Compensation) Act.