SINGAPORE (Nov 21): Operators of third-party taxi booking services in Singapore will be regulated from the second quarter of 2015.

The Land Transport Authority (LTA) said in a statement today that it will introduce a basic regulatory framework, after having consulted commuters, the National Taxi Association, third-party cab booking services and taxi companies over the past year.

Under the framework, all third-party taxi booking services are required to register with LTA, which will issue successful applicants a certificate of registration valid for three years.

In addition, only licensed taxis and drivers holding a valid vocational licence are allowed to operate.

All information on fares and surcharges must also be specified to commuters upfront.

Alternatively, third-party taxi booking services can allow commuters to set their user preferences to automatically reject certain types of taxis or cabs with certain fare rates and surcharges.

To ensure that taxi services remain equally accessible to the public, bidding and pre-trip tipping for taxi services will not be allowed.

Also, booking fees charged by third-party taxi booking services cannot exceed those imposed by taxi companies.

They are also not supposed to require commuters to specify their destination before accepting a booking.

"While the taxi industry has shared that knowing prospective passengers’ destinations can encourage drivers to accept bookings, there are concerns that some taxi drivers may choose their passengers and avoid taking bookings to certain destinations," said LTA, adding that it should be left to commuters to decide if they want to provide this information.

Companies like GrabTaxi and Easy Taxi, which have apps for taxi bookings, provide real-time location tracking and link drivers with passengers directly.

In the past, only cab companies, with their satellite systems, could easily track taxis and relay booking information, but with smartphones, GPS functions enable third parties to match drivers and passengers.