New entrants turn the taxi industry on its head

The disruptive technology and new business model brought about by the likes of Uber and GrabCar are a godsend to long-suffering commuters frustrated with an inefficient system that is unable to match supply and demand during peak periods. Yet, such app-based private car-sharing firms - which allow anyone with a driving licence to provide chauffeur services - are also posing a headache for policymakers.

Travis Kalanick, co-founder and CEO of Uber, in 2013

On one hand, there are concerns over commuter safety and ensuring a level playing field for traditional taxi operators, which provide tens of thousands of jobs. On the other hand, the low barriers to entry and flexibility have created money-making opportunities for many, including retirees and housewives. New life has also been breathed into the car-rental industry.

An Uber ride in Bogotá, Colombia. Visible on the dashboard is a phone running the Uber app

For commuters - and there are aplenty - who often complain that they can never get a taxi when they need one, the arrival of the apps are much welcomed. Nevertheless, a vast majority believe some form of regulation is needed, citing safety and pricing concerns.

A protest against Uber in Portland, Oregon (USA) in January 2015

Cabbies working for traditional taxi operators are seeing their livelihoods threatened, yet they are apprehensive about joining the hordes of Uber and GrabCar drivers. Some are worried about a sudden backlash or crackdown - as has been the case in some countries - on the private car-sharing apps.

A protest against Uber in Rio de Janeiro, Brazil in July 2015

Around the world, private car hire services are fighting legal and regulatory battles. A ban on taxi services provided by private drivers will take effect in South Korea while earlier this year, Germany banned an Uber service which used unlicensed taxi drivers to transport passengers. Uber drivers are being attacked by angry taxi drivers in several countries such as Australia, Costa Rica and Mexico. There have even been numerous reports in other countries about crimes allegedly committed by Uber drivers.

Maj. Gen. Ng Chee Meng, now Senior Minister of State for Transport, shows Chairman of the Joint Chiefs of Staff, Gen. Martin E. Dempsey, pictures on his iPhone during a reception at the Shangri-la Dialogue in Singapore in May 2014

The Singapore Government is also paying close attention. Senior Minister of State for Transport Ng Chee Meng is looking to forge a fair solution, after consulting taxi drivers as well as the general public.

(All images - credit: Wikimedia Commons under Creative Commons licence)