Singapore's taxi and ride-hailing sector is undergoing its most significant transformation since the arrival of Grab in 2013. The Land Transport Authority (LTA) has set a target for all new car registrations to be cleaner-energy models by 2030, with a full shift to electric vehicles (EVs) by 2040. Ride-hailing platforms are testing autonomous vehicles, and new regulations are reshaping how drivers and companies operate. This article examines the key forces that will define the future of taxis and ride-hailing in Singapore over the next five to ten years.
Electric Vehicle Adoption and Charging Infrastructure
The LTA's 2040 EV target applies directly to taxis and private-hire cars. As of October 2024, approximately 12% of Singapore's taxi fleet (around 1,800 vehicles) is electric, up from 3% in 2022. ComfortDelGro, the largest operator with about 8,000 taxis, has committed to converting 100% of its fleet to electric by 2035. SMRT Taxis, with roughly 2,500 vehicles, aims for full electrification by 2030.
Ride-hailing platforms are also transitioning. Grab, which has over 100,000 registered private-hire drivers in Singapore, launched a Green Programme in 2023 that offers lower commissions (15% instead of the standard 20%) for drivers using electric vehicles. Gojek and Tada have followed with similar incentives. However, driver adoption remains limited by upfront costs. An electric car like the BYD e6 costs around SGD 120,000 after the Early Adoption Incentive (EEI) and EV rebates, compared to SGD 80,000 for a comparable petrol model like the Toyota Corolla Altis.
Charging Network Expansion
The LTA targets 60,000 charging points by 2030, up from about 6,500 in early 2024. As of January 2025, around 12,000 points are operational. Key operators include SP Group (with 3,500 points), Shell Recharge (1,800 points), and Charge+ (1,200 points). For taxi drivers, dedicated fast-charging hubs are critical. The first such hub, operated by BlueSG, opened at Ang Mo Kio Depot in 2023 with 60 bays offering 50 kW DC chargers. A second hub at Loyang Industrial Estate with 120 bays is expected by mid-2025.
Ride-hailing drivers face longer wait times. A full charge for a 400 km range EV takes 45 minutes on a 50 kW charger, compared to 5 minutes to refuel a petrol car. This reduces productive driving hours. Some drivers report losing 1-2 hours per shift due to charging. The LTA is addressing this by mandating that new taxi depots and ride-hailing company lots include charging infrastructure. ComfortDelGro's new depot at Mandai, scheduled for 2026, will have 200 charging bays.
Autonomous Vehicles and Robotaxis
Autonomous vehicle (AV) trials in Singapore have been running since 2015. The LTA's AV test centre at CETRAN (Centre of Excellence for Testing and Research of Autonomous Vehicles) in Jurong West has hosted over 30 companies. The most advanced public trial is by Moovita, a Singapore-based startup that launched a driverless shuttle service at the National University of Singapore (NUS) in 2023, covering a 1.5 km loop at speeds up to 20 km/h.
For taxis and ride-hailing, the biggest development is the partnership between ComfortDelGro and the French company EasyMile. In October 2024, they began testing a Level 4 autonomous taxi on a 3 km route in One-North, with a safety driver present. The vehicle, an electric Renault Zoe, can operate without human intervention in geofenced areas. The trial is expected to expand to a commercial service by 2027, initially limited to 10 vehicles.
Grab has taken a different approach. Instead of developing its own AVs, Grab partnered with the Chinese company WeRide in 2022 to test robotaxis in Singapore. As of early 2025, WeRide operates a small fleet of 5 autonomous Lexus RX450h vehicles in the Sentosa area, offering free rides to selected users via the Grab app. The service covers a 4 km route from Sentosa Gateway to Siloso Beach.
Regulatory hurdles remain. The LTA requires all AVs to have a safety driver until Level 5 full autonomy is certified, and the timeline for that remains uncertain. Industry estimates suggest commercial Level 4 robotaxis could operate in limited zones by 2028, but widespread adoption is unlikely before 2035. A 2023 study by the Singapore University of Technology and Design (SUTD) estimated that robotaxis could reduce taxi fares by 30-40% due to lower labour costs, but only if the technology is proven safe and reliable.
Regulatory Changes and Licensing Reforms
The LTA's regulatory framework for taxis and private-hire cars has been evolving. In 2020, the government introduced the Private Hire Car Driver's Vocational Licence (PDVL) and Taxi Driver's Vocational Licence (TDVL), requiring all ride-hailing drivers to complete a 10-hour course. As of 2024, there are about 58,000 PDVL holders and 62,000 TDVL holders, with some drivers holding both.
A major reform occurred in January 2023: the LTA removed the quota on taxi numbers, which had been capped at 28,000 since 2014. This was intended to allow more competition. However, the actual number of taxis has declined from 23,500 in 2019 to 19,200 in 2024, as drivers shifted to private-hire cars. The LTA's data shows that private-hire cars (used for ride-hailing) increased from 48,000 in 2019 to 62,000 in 2024.
Fare Regulation and Transparency
The Public Transport Council (PTC) regulates taxi fares, but ride-hailing fares are not directly regulated. In 2024, the PTC approved a 10% increase in taxi metered fares, effective July 2024. The new flag-down rate for standard taxis is SGD 4.30 (up from SGD 3.90), and the distance charge is SGD 0.25 per 400 metres (up from SGD 0.22). Ride-hailing platforms have not faced similar fare caps, but the LTA introduced a new rule in 2023 requiring all platforms to display an estimated fare range before booking.
Looking ahead, the LTA is considering a unified licensing framework that would treat taxis and private-hire cars similarly. A 2024 consultation paper proposed that all for-hire vehicles (including taxis and PHCs) must have a standardised meter or fare calculation system approved by the PTC. This would effectively regulate ride-hailing fares, which platforms like Grab and Gojek oppose. The outcome is expected in late 2025.
Competition and Market Structure
The ride-hailing market in Singapore is dominated by Grab, which had about 75% market share in 2024, down from 80% in 2022. Gojek holds around 15%, and Tada (a Singapore-based platform) has 5%. The remaining 5% is split between smaller players like Ryde, Zig, and the taxi companies' own apps (ComfortDelGro's CDG Zig and SMRT's Taxi Booking App).
ComfortDelGro's CDG Zig app, launched in 2022, had about 500,000 downloads by mid-2024. It offers both taxi and private-hire bookings, with fares starting at SGD 3.90 for a standard taxi. The app has a feature called