SINGAPORE — Since entering the market last October, newcomer HDT Singapore Taxi has taken a different route compared to other operators. Cabbies are hired as employees, and receive a basic monthly salary of S$1,600, alongside staff benefits and Central Provident Fund contributions.  

Beyond the industry practice of having cabbies rent taxis, transport operators could introduce new job packages, such as what HDT offers, to give drivers more options, said National Taxi Association executive adviser Ang Hin Kee.

“What we hope is that taxi operators can provide a series (of options) for drivers to choose from … Nothing is going to stop one taxi operator from offering a series of options. They will have to work out the numbers,” said Mr Ang, who spoke at the official launch of HDT’s operations on Friday.

Asked if a basic salary could sweeten the deal for taxi drivers struggling in the wake of competition from GrabCar and Uber, he said: “I don’t see taxi drivers saying that since plying the road and earning my own income is now more difficult, I’ll choose this easier way, which is to work for someone. I don’t think drivers hold out the white flag in this manner.” Drivers have different needs, and these could guide their preference for job security or for job flexibility, he added. 

During the launch on Friday, HDT, which runs an all-electric fleet, shared its expansion plans: To double its fleet to 100 cars by June and grow it to 800 cars or more by 2019. 

It takes one-and-a-half hours to charge the BYD e6 taxis, which can travel over 350km on a single charge. There are 57 charging stations across the island in areas such as Bukit Timah and Tanah Merah. 

Managing director James Ng shared that drivers can take home as much as S$4,300 a month, provided they hit the company’s revenue target of S$8,500. Demand for a job has been overwhelming, with between 100 and 200 individuals applying for the 10 to 15 vacancies available each month, he said. 

Of the 50 drivers on board, about 60 to 70 per cent are experienced taxi drivers. The attrition rate stands at around 10 per cent, with drivers leaving due to their lower take-home pay after the CPF contribution is deducted, or due to a lack of job suitability. 

Drivers interviewed by TODAY said that they preferred the job security offered by HDT. 

As a limousine driver, Mr Wong Hui Fong, 34, noticed that the number of pick-ups he had were declining, ever since private-hire cars came into the picture. But after joining the new operator earlier this month, he is no longer fazed by this.

With a fixed monthly salary, he is able to spend time with his eight-year-old daughter — whom he is raising single-handedly — without worrying about losing time on the roads and potential income.  

Veteran cabbie Michael Ng, who has been driving for the past 20 years, agreed. Having joined HDT last December, Mr Ng, 52, said: “Now even if I want to rest, I don’t have to worry. A few stress factors are gone — rental, petrol (cost). (If I) want to take a day off, I take a day off.”

When contacted, Premier Taxis said that it was interesting that different operators were differentiating themselves in serving customers.

“With HDT offering a different pricing and incentive package from the mainstream taxi operators … the industry will be able to progress substantially to cater to a wider reach of participants who have differing needs and interests.” 

It added that it would be reviewing HDT’s performance and reflecting on how it could improve on “deliverables” to drivers and commuters.

SMRT declined to comment, while other taxi operators — ComfortDelGro, Prime and Trans-cab — did not respond by press time. 

Grab said that it was unlikely that it would enter an employer-employee model, while Uber said that their drivers have indicated that the company’s current model worked well for them.