Business Costs for Point-to-point Sector for Passenger Transport in Past Two Years

86 Ms Yeo Wan Ling asked the Minister for Transport (a) whether costs of business for the point-to-point sector for passenger transport have increased in the past two years; and (b) what are the largest components of these increases.

Mr S Iswaran: The business costs of driving a taxi or private hire car typically include vehicle rental, commissions paid to platform operators as well as fuel cost, which are subject to global fuel price fluctuations. Compared to January 2020, overall costs of business for point-to-point (P2P) drivers have increased by about 6%. This is mainly due to a rise in fuel expenditure, as fuel prices have increased over the past six months. With the gradual recovery of P2P ridership, drivers have also made more trips and seen increased operating costs in recent months.

Since February 2020, the Government has supported taxi and private hire car drivers through schemes, such as the Self-Employed Persons Income Relief Scheme (SIRS) and COVID-19 Driver Relief Fund (CDRF). Currently, P2P ridership has recovered to nearly 80% of pre-COVID levels, bolstering drivers' incomes. We are glad that taxi operators have continued to support drivers with rental relief and will monitor the sector to ensure that drivers are coping well in this challenging period.