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SINGAPORE – HDT Singapore Taxi has become the first taxi business to close amid the economic fallout from the coronavirus pandemic, and the Land Transport Authority this week accepted its request to close.
The electric taxi operator said it had been “struggling with slowing growth” in the business since the beginning of the year.
Some 90 taxi drivers and four back-end employees were laid off, a HDT spokesperson said, attributing the decision to the “prolonged and debilitating impact” of the coronavirus on the industry.
He said it is restructuring to focus on other green transportation solutions, such as electric buses and trucks, as well as electric vehicle leasing.
The company, which was granted a full taxi service operator license in 2018, is the smallest taxi company in Singapore. It operated around 100 electric taxis and had said it wanted to expand its fleet to 800 by 2022.
Unlike the more flexible models of other taxi and private rental companies, which treat drivers as self-employed, HDT employed its taxi drivers and paid them salaries, with benefits such as annual leave and contributions to the Central Provident Fund (CPF) .
Those laid off will receive one month’s salary for each year of service, pro rata. Drivers will be given their annual salary supplement, their Medisave accounts will be recharged until the end of the year and will be given a one-time downsizing benefit “as a gesture of gratitude,” the company said.
Ang Hin Kee, executive advisor to the National Taxi Association and the National Association of Private Rental Vehicles, said HDT’s employment model means it has had to bear a greater burden from the downturn in the taxi market this year. .
He said that ultimately, drivers could not “meet targets” to match the wage HDT pays.
Nor has there been much clamor among taxi drivers for HDT’s employment model, with many preferring to be self-employed and have a more flexible rental.
“At the end of the day, it’s about the market losing 40 percent of passenger demand. There are no tourists, no nightlife, and very few entertainment venues,” he said.
Demand for taxis and private cars during the two-month circuit breaker in April and May was almost non-existent. Even now, with the economy slowly reopening, passenger numbers continue to hover between 60% and 70% of pre-Covid-19 levels, severely affecting revenue streams for drivers and bus companies. taxis.
State Minister for Transport Amy Khor said the news was “unfortunate” and that taxi drivers and staff will receive fair treatment, such as downsizing benefits and necessary job support from relevant agencies.
“Drivers who wish to continue driving can consider joining the private car and bus rental services of HDT Singapore Taxi, or other taxi operators or transport companies,” he said.
“The National Taxi Association will also assist those who wish to consider transitioning to other career options outside of transportation.”
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