Singapore Government Rules Out Capping Ride-Hailing Operators Despite New Entrants

The Singapore government has made it clear that there are no plans to impose a cap on the number of ride-hailing operators in the country. Senior Minister of State for Transport, Amy Khor, confirmed this in Parliament on January 7, 2025, in response to concerns regarding the impact of new operators on the market.

Khor addressed a question from Desmond Choo, Member of Parliament for Tampines GRC, who inquired about the potential effects of the addition of two new operators, Geolah and Trans-Cab, on the availability of Certificates of Entitlement (COEs), the number of private-hire cars, and the pricing of ride-hailing services.

According to Khor, the entry of new operators does not appear to have a direct link to fluctuations in COE prices, noting that prices are determined by various factors, including broader macroeconomic conditions. She explained that COE demand has primarily been driven by local individual buyers over the past two years, and the supply of COEs will continue to increase until it reaches its peak in 2026.

The government has also ensured that the ride-hailing industry complements public transport by providing alternative travel options for those who do not own vehicles. Khor further emphasized that the number of platform operators in the market should be dictated by demand, not arbitrary limits.

Khor acknowledged that increased competition among ride-hailing providers would likely lead to service improvements and innovation, benefiting both commuters and drivers. She also highlighted that the government ensures transparency in fare structures and commissions, enabling drivers to optimise their earnings based on their preferences and driving habits.

When asked about the potential for new operators to push up COE prices, Khor reiterated that the factors influencing COE prices are multifaceted, and no conclusive evidence suggests a causal link between new entrants and rising prices.

The clarification comes after the announcement that two new ride-hailing companies, Geolah and Trans-Cab, have been granted provisional licences and are set to start operations in Singapore from January 1, 2025.