Just when I am thinking how fortunate it is that cab fares have not gone the way of train and bus fares, ComfortDelgro goes public with the announcement that Comfort, CityCab and Yellow-Top will introduce a fare hike come mid-July to deal with over-demand. The concept of a possible increase in supply probably never crossed their minds. (ComfortDelgro: Sacre bleu! l'horreur!)

The flag-down fee, if I'm not mistaken, is now $4 during 7.30am to 9.30am and 5.00pm to 11.00pm. I bet the other taxi companies will follow suit and "revise" their fare structures, seeing as how they "have said they will not raise fares unless ComfortDelGro, which dominates the market with 17,000 cabs, do so". I wonder if this amounts to collusive oligopoly.

I'm beginning to develop my own theory on why Singaporeans don't protest such fare hikes. If consumers tried to protest using boycotting as a strategy, then they'd have to abstain from driving (ERP hike), riding the train, bus and taxi, watching movies, eating popcorn, reading the papers, going to school (Uni fee hike) etc etc. Makes for a pretty miserable life all in all.

Time to load up on ComfortDelgro's shares.

Filed under: News, Singapore, Article