Transport surge pricing: Premier Taxi, Trans – Cab tricky moment
Every human society has a need for transportation; this may vary depending on the society and the peculiarity of the environment. Transport business is an age long trade that brings wealth and prosperity to those who are lucky enough to understand the basic rudiments of such business.
Exploitation and brisk profits are also parts of the industry. Today Singapore is just one of such places where transport big wigs are on the verge of exploiting loops holes in the system in order to maximize profit at the extent of the poor commuters.
Surge pricing: An avenue to exploit
According to the two major players in the controversial pricing regime, prices will fluctuate according to demands. This they passionately refer to as dynamic pricing where prices are according to the peak and off-peak periods.
The second largest cab operates in Singapore, Trans-Cab and the other Premier Taxi who is among the two smallest are the major forces behind the surge pricing. They are still waiting for the Public Transport Council, though the transport system is a deregulated market. However, the council must be intimated about new developments in the sector.
If the proposal gets approval as it is widely expected, then the new price surge may be a burden on commuters. With the smallest, operate in the market the Prime, considering giving the new tariffs a go. The new tariffs will be applicable to those who use the app, Grab ride-hailing.
Real-time and dynamic fares
The dynamic fares are real time dependent. It may be very low then the present prices at the off-peak periods. But it is expecting to be very high during the peak periods.
It is not new that during rail breakdowns, that some cab companies charge four to five times what is usually obtainable on ordinary days.
The brains behind the surge pricing argue that during high demands. The number of cabs available is far less than what is available. Even if they all have to increase their fleets, they may not be able to meet the high demands.
Conventional cabs may be the safe haven
If the surge pricing makes its way to see the light of the day, the conventional cabs may be in for brisk business, especially during the peak periods. The price competition will be in the favor of conventional cabs owners who will take advantage of the fixed pricing regime that big operators are charging.
The surge pricing may be a dicey decision by the major operators considering that the economy is just adjusting to last year’s financial challenges. Losing the chunk of the market share may not be the anticipated outcome the major cab companies expect. However, commuters will try to minimize spending their hard earned dollars on cabs.
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