a) Standard service - managed by LTA. Taxis offering standard service can pick passengers at taxi stands. Standard flag down rate, distance rate and peak period surcharge. Booking of taxis through a common call center controlled by LTA but outsourced to a service provider.
b)Local service - managed by LTA. Taxis can operate within a specific town. For short distance travel.
c) Premium service - managed by each individual company. Customers call their call center of the individual company to book for a taxi. The rates and conditions will be determined by each company.
LTA can change the terms of the standard service depending on the market demand and supply. If the rates are too low, there will be less taxis available and longer waiting time. If the rates are too high, there will be less customers and taxis have to wait (or they can rely on their taxi company's premium service.
This is market sensitive and helps to promote a free market for the standard and premium service. The premium service has to compete with the standard service to attract its customers. Competition works best when there is clarity in the market on the terms of service.
Tan Kin Lian