Take at look at this yard full of unused Comfort Delgro taxis, nobody wants to drive for them anymore and these taxis are sitting in the yard rusting away. After the Govt allow Uber and Grab to enter the market, this is what happens, but how did the taxi companies respond?
They refused to lower their rental to keep their loyal taxi drivers/partners, they rather see their taxi drivers hop over to Grab and Uber than lower the rental. This oversupply of unused taxi is the result.
If the taxi companies still refuse to recognise this new reality and give taxi drivers a better deal, there will be more taxis sitting in their yard and their profits will hurt in the long run.
Why is the Govt allowing this to happen? Taxi drivers don’t deserve a proper livelihood? They realise if they don’t help taxi drivers, there will not be enough taxis on the roads and people will complain right?