Singapore has announced plans to regulate fast-growing third-party taxi booking services like Uber and GrabTaxi for the first time ever, capping fees and requiring them to dispatch only licensed drivers and cabs.
Operators of the popular services based on mobile phone applications will be required to register with Singapore's Land Transport Authority (LTA) under the new rules, which take effect in second-quarter 2015, according to Reuters.
The LTA confirmed Friday that the fees charged by the booking services wouldn't exceed those of regular taxi companies. The LTA is in charge of operating, maintaining and planning Singapore's land transport infrastructure and systems.
Singapore is one of the most expensive places in the world to own a private car. Many people rely on taxis and public transport to get around, though finding a cab during peak hours and tropical downpours can be a hassle.
Comfortdelgro Corp is Singapore's largest traditional taxi company and has its own booking services.
Apps like GrabTaxi offer commuters a choice between taxis closest to their location, no matter which company operates them.
An external executive in charge of dealing with media queries for GrabTaxi said the company had no comment regarding the news at this time.
Uber's booking services in Singapore include high-end UberExec and cheaper UberX vehicles currently, along with other options that help users look for regular licensed taxis, according to the Reuters report.
"We appreciate that the LTA has acknowledged the benefits our technology brings, and like Uber, is putting the interest and safety of consumers and drivers first," Mike Brown, regional general manager of Southeast Asia at Uber, said in a statement, according to the report.
New regulations would only apply to taxis according to Uber, and are not expected to affect UberExec and UberX. The company already only partners with already licensed limousine and rental car companies for those two services.
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