Structure of Rental Contracts for Taxis, Private Hire Cars and Limousines
- Assoc Prof Walter Theseira raised concerns about the structure of taxi, private-hire car, and limousine rental contracts, including duration, fees, early termination penalties, and whether they expose drivers to excessive risk during demand downturns like COVID-19.
- Khaw Boon Wan explained that the rental market offers diverse contract options tailored to different driver preferences, with varying trade-offs between flexibility and cost, and noted that some drivers are employed directly by operators.
- The government has introduced support schemes such as the Special Relief Fund and Self-Employed Person Income Relief Scheme to help drivers cope with reduced income during the pandemic.
- Fleet owners have also offered rental reductions and flexibility on arrears or early vehicle returns to assist drivers amid the crisis.
- Both speakers emphasized the need for a balanced, competitive rental market that supports drivers’ livelihoods while maintaining long-term industry resilience.