COMMUTERS will soon have another choice when it comes to hailing a taxi. And
the rides may also be cheaper.

The Straits Times learnt that parallel importer Prime Leasing was granted a
taxi operating licence by the Land Transport Authority yesterday afternoon.
Neither party would comment when approached.

But sources said the company will start up as early as this month, with a fleet
of popular parallel imports. They include the Toyota Wish, Honda Stream and
Honda Airwave - all running on compressed natural gas (CNG).

Prime Leasing, part of the Cheng Yong Credit group, is the fourth newcomer
since the industry was liberalised four years ago.

Cheng Yong managing director Neo Nam Heng, 51, indicated recently that CNG cabs
would be cheaper to buy because of the Government's tax break for "green"
vehicles.

CNG vehicles are considered environmentally friendly because they emit almost
no fine soot from their tailpipes.

And because such cabs are cheaper to purchase, Mr Neo will rent them out to
cabbies at lower rates.

He also said that his taxi drivers will charge commuters slightly less than
others in the market.

There are now five taxi groups operating 23,000 cabs in Singapore.

ComfortDelGro Corp has the lion's share with about 16,000 while SMRT Corp has
just over 3,000.

Of the newcomers, Trans-Cab has more than 2,200 taxis, while Smart Automobiles
and Premier Taxis have about 1,000 each.

Prime Leasing will start with 500 cabs in the first year, rising to 800 by the
third.

The company's parent group, Cheng Yong, has an annual turnover of around $100
million.

Besides parallel-importing vehicles, the group is involved in car rental and
leasing, exporting of used cars and vehicle financing.

Commuters, who have often complained of not being able to get a cab, should
find the additional player a boon.

But Hougang resident Li Yu Zhen, 33, hopes for something more.

"I hope the new player can take service to a higher level. Because I don't
really see a shortage of taxis.

"What's lacking is the service level," said Ms Li, an oil company executive.