October 17, 2019 13:52
Ride-hailing app TADA has given in to pressure from the government and established taxi lobby and decided to delay a plan to increase its fleet of vans.
The decision came only nine days after it unveiled its ambitious plan to boost the fleet from the present 1,400 vans to 10,000 next year.
TADA operator VCNC on Wednesday pledged to hold the plan until the end of this year, when the Ministry of Land, Infrastructure and Transport comes up with measures to bring taxi regulations into the 21st century.
VCNC backed down after the ministry told the company the plan is "inappropriate" and threatened to revoke its license. "We haven't scrapped the plan entirely but decided to hold it temporarily," a VCNC spokesman said.
Instead, it decided to expand premium limousine services. TADA also plans to increase its fares to avoid competing with regular taxis.
In the initial stage of its services, TADA set its fares about 30 percent higher than regular taxis, but the gap narrowed after taxi fares increased early this year. This resulted in more people choosing TADA vans that charge similar fares but offer better services, causing more ire from taxi drivers.
But all this arm-wrestling has left customers bearing the brunt as they have to either pay more or put up with poorer services.
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