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HDT Singapore Holding, whose electric taxis have roamed city-state roads for about two years, is shutting down business forever and instead focusing on other green transportation solutions.
The company has suffered a “prolonged and debilitating shock” as the coronavirus outbreak disrupted the taxi industry, said HDT, which is affiliated with Chinese electric vehicle giant BYD Co.
The pandemic-related restrictions, which led to a sustained trend of working from home and limited travel, caused the company to “struggle with slowing growth” of the business since the beginning of this year.
Your request to the Land Transportation Authority (LTA) to close the taxi arm has been accepted.
About 90 taxi drivers and four back-end employees were cut in the reduction exercise, an HDT spokesperson told The Business Times (BT).
The layoffs were carried out after consultation with the National Taxi Association (NTA) of Singapore and in accordance with the Tripartite Advice on Managing Excess Manpower and Responsible Abatement.
The electric vehicle (EV) group, which also provides point-to-point bus services, electric vehicle concierge services, vehicle rental and school transportation, became Singapore’s seventh taxi service operator when it came into force. your full 10-year LTA license in August 2018.
Under HDT Singapore Taxi’s full-time employment model, drivers received a base salary with work benefits such as sick leave and contributions to the Central Provident Fund (CPF). This is in contrast to other companies that rent taxis to taxi drivers, who then keep all the fares they earn.
On Friday, the company said it will provide downsizing benefits to all affected staff, including taxi drivers employed by HDT and the back-end team that managed taxi operations.
HDT will pay each of them one month’s salary for each year of service, on a pro-rata basis.
In addition, all employed drivers will receive the annual salary supplement, also known as the thirteenth month pay, while their Medisave accounts will be recharged until the end of this year.
There will also be a one-time downsizing benefit that will be awarded to both employed and test taxi drivers, “as a gesture of gratitude from HDT,” the company said, without disclosing this amount.
For all categories of its taxi drivers, HDT will renew their NTA memberships for 2021.
The company said it has worked with NTA to ensure fair compensation to affected employees.
It is also providing assistance, for example by linking them with the Employment and Employability Institute (e2i) of the National Trade Union Congress (NTUC) to obtain support and employment opportunities.
The company added that it will work with NTA to help laid off staff find new jobs with other taxi operators and trucking companies.
“Those who wish to become HDT private bus or rental car drivers are welcome,” said James Ng, managing director of the group.
NTUC Director Yeo Wan Ling also noted that for affected drivers who wish to continue driving, NTA will connect them with other operators.
And those who are open to other opportunities can reach out to e2i and NTA, which will help them make a quick transition to a new job under the NTUC Occupational Safety Council.
Additionally, eligible NTA members will continue to receive member benefits and financial assistance, such as the Enhanced NTUC Care Fund (Covid-19), through the end of 2021, with no break in their membership.
Since the start of the Covid-19 pandemic, NTA has “closely watched” taxi drivers in the country and has worked with taxi companies to safeguard the well-being of drivers, Ms Yeo added.
“NTA will continue to be here for our members in case they need more help,” he said.
In the statement, HDT’s Mr. Ng thanked the taxi division employees for their contributions and for “persevering with us during this crisis.”
“It is with great regret that we have to ditch the taxi business and let go of some of our dedicated employees,” he said.
In the future, HDT will focus on business promotion efforts in the field of electric vehicles and develop a range of eco-friendly transport services.
These will include vehicle transport services, electric buses, electric truck sales, as well as electric vehicle leasing in the consumer, commercial and industrial segments.
“We will work closely with our strategic partners to promote the electrification of transportation in Singapore for a greener, low-carbon environment,” said Mr. Ng.
While there are currently no plans to resume taxi operations given the uncertain environment of the pandemic, the company “could review it in the future,” the HDT spokesman told BT.
Under the taxi service operator license, HDT was to operate at least 800 electric taxis by July 2022, and it had to ensure that enough charging stations were established across the country to support its fleet.
Ng said in 2018 that the company would launch 200 taxis each year for the next four years to meet the requirement.
In 2017, HDT told local media that its taxi drivers would receive a basic gross income of S $ 1,900 per month, including contributions to the CPF, which could amount to S $ 2,800 with overtime. Your salary could progressively increase with higher income goals. For example, if S $ 8,500 is achieved, the gross salary rises to S $ 4,300.
HDT is BYD’s agent in Singapore, which makes cars, rechargeable batteries, buses, solar panels, and more. HDT’s taxi fleet included the Chinese manufacturer’s e6 electric sedans.
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