Last month, a new bill was tabled in Parliament to regulate the ride-hailing firms in Singapore.
Called the Point-to-Point (P2P) Passenger Transport Industry Bill, it proposes two types of licences to be issued to street-hail and ride-hail operators.
Senior Minister of State for Transport Janil Puthucheary shared details on the licensing framework in Parliament today.
Under this new framework, two separate licenses will be issued to street-hail operators (only taxi companies for now) and ride-hail operators like Grab and Gojek, from June next year.
Operators with at least 800 vehicles on their platform must apply for a license and those with smaller fleets have to apply for an exemption.
License applications will open in February next year.
Firms caught providing a service without a license or exemption will face a fine of up to $10,000, up to six months’ jail, or both.
They’ll be fined an additional $500 a day if the offence continues after conviction.
Drivers who drive for such firms will also be convicted.
With this new licensing, the Land Transport Authority (LTA) will have a tighter control on safety.
For instance, it will keep track on the number of accidents and driver offences.
Drivers who have committed “too many” accidents or offences can be penalised through regulatory sanctions, said Dr Janil.
To uphold the safety standard, companies will also have to ensure their vehicles are “well-maintained and serviceable”.
Featured Image Credit: AFP