CCS’s Work on Third-party Taxi Applications Recognised by the International Competition Network and the World Bank Group

26 June 2015

1. Singapore was named a winner at the 2014 Competition Advocacy Contest for the work of the Competition Commission of Singapore (CCS) in promoting competition in the taxi industry. CCS has worked together with the Land Transport Authority (LTA) to facilitate the entry of third-party taxi booking applications (“third-party apps”) while ensuring that taxi commuters’ interests are safeguarded regardless of whether a booking is made through a taxi company or a third-party taxi booking service provider.

2. The annual Competition Advocacy Contest was jointly organised by the International Competition Network (ICN) and the World Bank Group to raise awareness of the key role of competition authorities in advocating and promoting competition within their countries and to showcase their successful advocacy stories.

3. Third-pary taxi booking services such as MoobiTaxi, GrabTaxi, Easy Taxi, UberTAXI and Hailo, currently account for about four percent of taxi bookings made in Singapore and the figure is expected to continue to rise.^[1]Third-party apps first appeared in Singapore in late 2013. These apps help to improve the matching of taxi supply and demand, especially during peak hours. Taxi drivers also benefit by being able to get passengers from varied sources of taxi booking.

4. To harness the benefits brought about by such new technologies and business models, while at the same time, safeguard commuters’ safety and interests, LTA introduced a regulatory framework in May 2015 that requires all third-party taxi booking services with more than 20 participating taxis to register with LTA in order to operate in Singapore.

5. In formulating its regulatory approach, LTA worked with CCS to assess the competition impact of these third-party taxi booking apps on the taxi industry, as well as how to encourage innovation within the market while preserving the fundamental tenets of LTA’s taxi regulatory policies. CCS, on its part, undertook a market study of the taxi industry to better understand the competitive landscape and the competition issues faced by different stakeholders^[2] as they operate in this market.

6. CCS’s Chief Executive Toh Han Li notes:

“There is currently a vibrant market for third-party taxi applications. They are innovative solutions in terms of matching supply and demand of taxis. Properly regulated, they have the ability to deliver considerable benefits to taxi operators, taxi drivers and commuters.”

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About The Competition Commission of Singapore (CCS)

CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.

For more information, please visit www.ccs.gov.sg

About the International Competition Network (ICN)

The ICN is an international body dedicated to competition law enforcement and its members represent national and multinational competition authorities. The ICN’s mission is to advocate the adoption of superior standards and procedures in competition policy around the world, formulate proposals for procedural and substantive convergence, and seek to facilitate effective international cooperation to the benefit of member agencies, consumers and economies worldwide.

For more information, please visit www.internationalcompetitionnetwork.org

About the World Bank Group

Headquartered in Washington, D.C. with more than 120 offices worldwide, the World Bank Group provides financial and technical assistance to developing countries around the world. It consists of five organisations managed by their member countries – The International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Multilateral Investment Guarantee Agency and the International Centre for Settlement of Investment Disputes.

For more information, please visit www.worldbank.org

Enclosed: Annex A – photos from the 2014 Competition Advocacy Contest Awards Ceremony held on 23 June 2015 in Washington, D.C.

For media clarifications, please contact:

Ms. Loy Pwee Inn
Senior Assistant Director
Communications
Competition Commission of Singapore
Email: loy_pwee_inn@ccs.gov.sg
DID: 6325 8313

Ms. Grace Suen
Assistant Director
Communications
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216/ 9835 8601

^[1] Speech made in Parliament by Minister for Transport at the Second Reading of the Third-Party Taxi Booking Service Providers Bill on 11 May 2015.

^[2] Market stakeholders include taxi companies, taxi drivers, apps providers and commuters.

Annex A

Advocacy Contest

Representatives from the Competition Commission of Singapore: Mr Lim Wei Lu, Assistant Director, and Mr Ng Ming Jie, Senior Assistant Director, both from the Policy and Markets Division, received the award at the 2014 Competition Advocacy Contest Awards Ceremony held on 23 June 2015 in Washington, D.C.

Award

Singapore named a winner at the 2014 Competition Advocacy Contest for the work of the Competition Commission of Singapore (CCS) in promoting competition in the taxi industry.