IT'S yet another issue that divides transport experts, taxi operators, cabbies and commuters caught up in the great taxi debate.
To the first three, taxis offer a premium service.
You use them when you need them most. You don't have to jostle with other commuters. You're picked up wherever you are and driven almost right to the doorstep of your destination.
Logically if it's a premium service, you should pay more.
But most commuters see taxis as just another form of public transport - like the bus and the MRT - albeit a costlier one.
If it's part of the public transport system, why should you pay a premium for it?
So, who's right?
Transport researcher Lee Der-Horng, from the National University of Singapore (NUS), told The New Paper: 'Taxis are not public transportation... (but) should be considered as a complement to public transport because it offers door-to-door transport services to those who need car-like transportation but do not own a car.'
NUS transport economist Anthony Chin agreed.
'Taxi services are premium services using cars as a mode of transport. It's not mass transport.'
But commuter A L Chan, 29, an events co-ordinator, sees taxis as a form of public transport.
'Yes, I have the cab all to myself. But cabs ply the roads that are accessible to the public and we take them from these public roads,' she said.
'Yes, we pay more than we do for buses and trains, but that doesn't mean we have to pay high fares like in the US or Australia.'
Taxi fares in Singapore are cheaper than those in many other developed countries.
The latest round of fare hikes by ComfortDelgro, the biggest taxi operator here with a fleet of about 15,000 cabs, will bring our fares much closer to Hong Kong's.
Hong Kong's taxi charges have often been perceived as a good benchmark.
ComfortDelgro's fare revisions will start next Monday. SMRT Taxis, the second-largest operator, said yesterday it is also raising fares from 21 Dec (see other report).
Many who have lived or been to Hong Kong said it is much easier to get a cab there despite a population 11/2 bigger than Singapore's and with fewer cabs.
But our taxi fares will still be lower than most cities in the US, Australia and Europe.
CHEAP IS GOOD?
Low fares can be a double-edged sword.
While commuters' pockets do not hurt too much, they end up treating taxis as a form of public transport.
Associate Professor Lee said: 'Due to low taxi fares, people here are somehow used to considering taxis as part of public transportation, which is an incorrect perception.'
Miss Chan admitted that affordable taxi fares have led her to treat a cab ride 'like a more expensive but faster and more comfortable bus or MRT ride'.
She added: 'It's so expensive to own a car in Singapore - with COE prices, and now rising fuel prices and ERP (Electronic Road Pricing).
'Even if I take a cab every day, it's still cheaper than owning a car. But overseas, where cars are more affordable, taxis are seen as premium services so fares are higher.'
Last year was the first time in 12 years that ComfortDelgro raised fares. Why did it take so long to do so?
Its spokesman Tammy Tan explained: 'Raising fares is done only as a last resort and in the last year, costs have gone up significantly.'
ComfortDelgro believes taxis are premium services. But have commuters become too comfortable with low fares all these years?
Associate Professor Chin noted: 'Any (price) hike is always not well-received because it eats into pockets and it means you spend less on other consumables.'
In Singapore, it's hard to separate the service from the market, said MP Ong Kian Min, deputy chairman of the Government Parliamentary Committee for Transport.
'Here, there's a mismatch of demand and supply,' he pointed out.
'During peak hours, there are too many passengers and too few taxis. But during off-peak hours, there's an excess of taxis readily available if people are willing to pay for them.
'But during those times, most would rather take buses and trains.'
Mr Ong added: 'Taxis are not really like buses and trains. But if you treat taxis as premium services and increase fares by a lot, many people may stop taking them and this would affect drivers' income.
'Limousine cabs were once premium services. After a while, they ended up picking up passengers like ordinary taxis.'
MIDDLE GROUND
Perhaps it's better to just see taxis as somewhere in between a premium service and public transport.
Commuter Sherlyn Aw, 29, a financial advisor, said: 'Taxis are a form of public transport as it's accessible to the public. But they're a higher class of public transport, so we should pay more for them.'
Cabby Mohd Anuar, 49, agreed.
'While I consider taxis as public transport, it can't be too cheap.
'Otherwise, you can put a million taxis on the road and there still won't be enough because then, everyone will want to take them.'
Prof Lee feels it's time commuters take greater personal responsibility.
'Since we do provide a reasonable public transportation service, commuters should think carefully about their travel decisions - like the mode, departure time, destination, route, etc.'
SMRT taxi fares up from next Friday
- Flag-down rate for standard taxis up by 30 cents. For limousine taxis, up 40 cents.
- Distance-based charges up by 10 cents for every 385m, for trips 10km and below.
- Booking fees down by 50 cents during peak hours.
- Late-night surcharge: 50% of metered fare (midnight to 5.59am).
- Peak-hour surcharge: 35% of metered fare.
- CBD surcharge: $3 (Monday-Saturday, 5pm to midnight)