4. Developing the Taxi Transformation Plan - SPAD

Table 2.9: Current Vehicle Operating Costs (Monthly)
Item
Monthly Costs
(vehicle hire
purchase)
Monthly
Costs
(vehicle
rent)
Assumptions
Vehicle Hire
Purchase Cost
RM 592 - The car model assumed is a SAGA (based on the
full on-the-road package over 7 years)
Vehicle Rent - RM1,276 The car model used is SAGA with approximately
rental fee RM44/day X 29 days
Maintenance and
Insurance
RM355 RM355 Calculations based on 350km/day x 29 days
Fuel RM609 RM609 Calculations based on 350km/day X29days
Total Cost RM 1,556 RM2,240
An assessment of average revenues has been undertaken based on the feedback provided from
operators. This estimates that 40% of distance travelled is fare paying and some 375 km are
travelled on average per day. It was also suggested that it was possible to obtain up to RM17 per
hour in fares. Based on these assumptions and the operating costs set out in the previous section it
is estimated that an individual driver could potentially make up to RM36,000 per annum based on a
working day of 12 hours and working 29 days per month. The KL City Plan states that the average
household income in KL is higher than anywhere else in the country and stood at RM 5,488 per
month in 2009. Although the taxi driver net revenue is less than average earnings across KL the
figures are understood to be comparable with the wage levels of bus drivers in the region.
2.11) Operation of the Market
There is little information available on the balance between the supply and demand of taxi
services in the GKL/KV region. The evidence reviewed suggests that there is a general abundance
of taxis available across the area, however the inherent variations in demand temporally and
geographically inevitably result in a disparity between available supply and passenger demand at
certain times or locations. This is completely normal characteristic of taxi markets globally as it is
generally accepted that it is impractical to provide for peaks in demand. The result would be
increased congestion and over competition at non peak times which in turn result in a reduction of
quality as drivers and operators may chose to cut corners on maintenance, not use the meter or
work increased hours in an attempt to maintain their income levels.
There is a need to begin collection of data in order to assist future understanding of the supply -
demand relationship across GKL/KV and the peculiarities of the market operations in this region.
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