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Healthy competition among e-hailing apps welcome

It is no surprise that some taxi companies and drivers wish to park under the Uber app as passengers who use mobile phones to book a ride would rather call ride-hailing apps than one of the dozen taxi apps available locally, simply because fares for the former are lower.

Moreover, some taxi drivers are already under Grab from the beginning, as they started with MyTeksi, which was solely a taxi app when it was launched in 2012.

After e-hailing apps are regulated this month, drivers will be given a grace period to obtain a vocational licence, apart from sending their vehicles for inspection upon reaching three years or clocking 150,000km. Cars above five years will no longer be allowed to continue.

As such, the number of part time e-hailing drivers will be reduced considerably and it makes perfect sense for Uber and taxi drivers to collaborate, which can be done easily as shown by Grab.

Drivers would benefit if Uber can offer something better, if not, Grab will remain to be more popular. There is nothing like healthy competition and there is room for a third e-hailing app to stir things up in the market, and passengers are likely to be the main beneficiary.

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