Taxi Touting : Greed and Naivety

Enforcement but is the underlying problem resolved?

I have read various lamentations by online folks "whacking" taxi drivers for touting. The result - mainstream media picked it up and it is now a serious issue. Frankly, I don't know what these people are angry about. The penalties are already very harsh - with loss of income and livelihood for very long periods. But yet taxi drivers are still taking the risk. The most immediate solution on the head of these people? Tighter Enforcement. Ridiculous if you ask me. I am not saying touting is right - or that law breaking ought to be encouraged. I think the situation is one of a combination of greed and naivety - rather than anything immoral or wicked.

Lets start with what I consider a reasonable assumption. I assume that the average driver works reasonably hard and attempt to earn as much as reasonably possible within the human spirit. With the recent rise in diesel prices, the average driver will have to work much harder. We also know a few things. Mercedes Cab drivers pay from $120-$150 a day for their rental. Compared to one of the cheaper options available ($90 SMART Volkswagen Touran), we are looking at a $900 monthly difference.

This $900 monthly should reflect a premium which Mercs cab driver can obtain somewhere. There are naturally some "advantages" which one can easily envisage from driving a Mercs. There are a class of taxi drivers which this will appeal to. For exmaple, many of these Mers Cab drivers are also part time insurance agent or property agents or have other businesses - where a Mercs will "help" their image.

Yet not all have a sideline. Most will have to rely on other sources of income. Some rich Corporates will hire them to drive special corporate folks around. They were also the choice of top notch hotels (5, 6 stars variety) when the hotel staff call a Mers cab for their choice customers (negotiated rate). Yet, the corporate/s in the new wave of cost cutting philosophy eschew from such "ostentatious" display and hotels realize soon enough their choice guests are not willing to pay so much even if they are choice customers, when the alternative is far cheaper and widely available. Then there is the boycott due to the bad reputation. Some Singaporeans now snide Mercedes Cabs and refuse to board it. I heard this is also the case for certain hotels. Touting = criminal = bad rep = image drop = less business.

Why then is anyone surprised/shock/disgusted that Mers Cab Drivers are the ones that are touting?

The situation is a result of naivety on the part of the Mercs Drivers because many of the Mercs Drivers who signed the contract with the Taxi Companies still believe that there is a "premium" on the "image". I think there still is, but it has definitely deflated to far less than $30 a day. In order to reflect that premium today ($30 a day), the Mercs Cab driver must do 4 to 5 trips per day more than the average cab driver. To ask the average Mercs Cab driver to work so much harder than the average driver which we assume already works reasonably hard today will be very difficult. Sure, they will have no choice when the enforcement kicks in or take greater risks (which means asking for more during touting).

We could also price how much "risk" costs for them to make it worth it. It is very important for the touts to avoid getting caught for a suitably long period for this to be profitable. That is probably the key reason why they don't take locals - because of that naive belief that locals are more prone to complain.

But as we have read, many indeed choose to do not tout rather than tout. So there is also the greed element to it. Compare that strenuous effort additional 4-5 trips a day to touting. Little wonder the quoted rate is 30-50 dollars. As long as the Mercs Cab driver gets one short trip on that rate a day, it will suitably reflect the premium he had paid for the cab. But this is not greed as we normally condemned it to be, this is not an attempt to become rich, but more akin to a hungry man stealing bread. Any more will be greed.

So enforcement has begun. This is very easy really.

"SINGAPORE: The Land Transport Authority (LTA) has intensified its crackdowns on taxi drivers who commit offences. It caught 41 taxi drivers committing offences during a four-day operation conducted at popular nightlife areas such as Clarke Quay, Boat Quay and Orchard Towers from October 24 to 27. Twenty-two of them were found touting; eight had overcharged; the rest had refused to pick up passengers."

So it is indeed, as I suggested already, a very common practice. And despite enforcement, is the underlying problem resolved? So I think we must give them some advantages. I suggest that perhaps some authority like the Airport give them some privileges (like special queues for Mercs Cab) which will indeed reflect their premium, etc. Then it will help reduce the incentives to tout. Or else in the long run, it will just mean there will be less Mercs Cabs, and hence less cabs on the streets.