Regulating Growth of Private Hire and Rental Car Populations

Mr Chua Kheng Wee Louis asked the Minister for Transport (a) whether the Government is considering regulating the growth of (i) the private hire car and (ii) rental car population; and (b) if not, why not.

Private hire cars (PHCs), including rental cars and cars used to provide ride-hail and car-sharing services, complement mass public transport by providing point-to-point (P2P) transport options for commuters. Such shared transport modes provide a useful alternative to private car ownership, especially for those who may need access to car-like services. They also enable more commuters to benefit from each vehicle, compared to individually-owned private cars.

As more Singaporeans have come to rely on PHCs to meet their needs for car-like services, the demand for PHCs is expected to remain resilient. For instance, with the reopening of the economy and more people returning to workplaces, the average number of daily ride-hail trips fulfilled by PHCs has increased by about 33% since 2020, almost matching the pre-COVID-19 levels.

Despite this, the total PHC population has averaged around 70,000 since 2019, after a period of rapid expansion from 2015 to 2017. As a proportion of the total car population, PHCs have remained stable at around 10% over the last four years. Capping the PHC population may cause the cost of services, such as ride-hail fares and car rental fees, to spike if demand goes up further. This will have adverse effects on commuters who rely on P2P services. The Ministry of Transport (MOT) and the Land Transport Authority (LTA) will continue to study the effect of PHCs, if any, on the market.