PAP MP Ang Hin Kee said that the government may allow taxi drivers to use their taxis for delivery but taxi drivers must be made to pay insurance.
“To tackle this, the proposed regulatory sandbox could experiment with broader insurance coverage allowing for the carriage of goods.”
The PAP MP who is also the National Taxi Association’s (NTA) executive adviser said he would propose an “experiment” by making taxi drivers pay for insurance of the delivery goods. However, insurance for couriers is usually very expensive and may cost up to S$2,000 a year depending on the goods delivered.
The Transport Ministry’s Land Transport Authority (LTA) yesterday issued a ban on courier delivery using taxi vehicles and private-hire vehicles, without giving an explanation. This resulted in a loss of potential income for taxi drivers of up to S$1,000 a month, who deliver goods during off-peak hours.
According to Amazon, a taxi driver is paid up to S$30 for an hour of delivery. There has been no complaints by the public, taxi drivers or commuters, and there has been no report of taxi availability being affected. LTA is unable to produce a valid reason for the ban, but it is understood that the ruling party dictatorship is unhappy that a new service is being innovated and they are unable to tax drivers for it.