The Land Transport Authority (LTA) of Singapore announced it will review the ride-hailing and taxi industries, causing shares of Southeast Asian super provider Grab to dip 8%.
Grab, whose services include ride-hailing, saw its shares lose the gains they had made over the past three weeks, Seeking Alpha reported Wednesday (Sept. 13). Shares remain slightly up for the year, however.
The LTA of Singapore has launched a review of the Point-to-Point (P2P) industry structure and regulatory framework to ensure its continued relevance and adaptability, according to a Wednesday press release. P2P transport, which includes traditional taxis and ride-hailing services, plays a role in complementing the mass public transport system and providing commuters with transportation options.
The average number of P2P trips has been increasing, according to the release. From November 2020 to July 2023, the daily number of P2P trips rose from approximately 517,000 to 613,000. However, the rise of ride-hailing services has led to a decrease in demand for traditional taxis, resulting in fewer taxis on the streets. However, taxis continue to serve high-demand locations and cater to tourists and less technologically savvy commuters.
The review by the LTA focuses on three key objectives, the release said. Firstly, it aims to improve the availability of P2P supply throughout the day, including addressing shortages during late-night hours. Secondly, it will assess the resilience of P2P services, ensuring minimal disruptions and downtime as these services become increasingly important in the daily lives of Singaporeans. Lastly, it will examine the inclusivity of P2P transport, which needs to cater to the additional requirements of commuter groups such as wheelchair users and families with young children.
The LTA plans to consult with its partners, including operators and P2P drivers, as well as reach out to different commuter groups to gather their perspectives and feedback, per the release. The authority expects to complete the review by the second quarter of 2024.
Grab reported Aug. 23 that it has expanded its marketplace of drivers, riders and small businesses by launching “affordability initiatives” and strengthening engagement through its flagship subscription program.
“More people are using Grab now than ever before,” Grab CEO Anthony Tan said at the time.