Before the advent of Uber and private-hire drivers, we have taxi companies and taxi drivers. Before that in the Asian societies we have the rickshaw and its human runner. No matter the era, among all the jobs available in society, these jobs with their low barriers to entry ensure that those unskilled and unemployed have a means to earn an income. Just that we have gone from manual labour in the past to a slightly better condition of sitting in an air-conditioned vehicle.
In the modern day world, taxi and private-hire drivers co-exist and compete with each other, with many former taxi drivers also signing up for private-hire assignments. Sometimes we even see news articles or reports of a certain driver who earns a significant amount every month. Of course, barring the validity of the claims, the hours put in per day is long. And unlike full time employment in a company, there are no paid sick leaves and annual vacation leaves. There are no staff benefits and things like that. You work, you earn. You stop working for whatever reason, you don’t take in a single cent. No matter the era, this job is simply a bottom feeder job.
Don’t get me wrong. I do not look down on private-hire drivers. They earn an honest living through their hard work and that is respectable. But it is also a fact that jobs are classified into different tiers, and driving is definitely not a job that can be compared to a manager or CEO of a company.
However, is earning more than $10k per month the true reality on the ground? Firstly, not everyone has the capacity to drive that long. Secondly, this may simply be an outlier. In fact, 2 months back in August 2024, there was a news article about private-hire drivers not earning as much as before. Grab, which is Singapore’s version of Uber, said that the income dip is ‘seasonal’.
Supply And Demand Of Private-Hire Drivers
If we look at the statistics over the years, we will see that competition in the taxi and private-hire industry has been increasing over the years.
The above statistics from Singapore’s Land Transport Authority indicates that there was an increase from 44,091 private-hire vehicles and taxis in 2013 to 95,374 by the end of 2013. In just a span of 10 years, the number of people plying this trade has more than doubled. Its very low barriers of entry meant that people who are out of job, people who are unskilled or uneducated, or people who simply do not wish to work under a boss can easily join this sector. Whatever reason people may have, it is very easy to join this trade and people have been doing so.
During bad times such as a recession, where more people are retrenched and where young graduates are simply unable to find any jobs, we can expect the numbers to increase. Basic demand and supply will tell us that the drivers will face longer journeys at cheaper fares while spending more time on the road trying to secure the next passenger.
Autonomous Driving
Throughout history, whenever there is a scientific breakthrough, many people from the old sector will be out of job. In place, a new sector is born and new jobs are created. Those who cannot adapt will suffer, while those who could do so prosper. In my article of mass production, I mentioned that the advent of mass production had improved the productivity of a skilled worker originally making 20 pins a day to an unskilled worker making 240 pins per day. While mass production opened up a bunch of possibilities as we know today, skilled workers who dedicated their lives to making pins were rendered effectively useless.
From the rickshaw runner who could only run a short distance to the slightly skilled private-hire driver today who can ferry passengers over a much longer distance, the scientific breakthrough in transport has benefited society greatly. So will it be with autonomous driving, where the fleet of driverless cars which can ply the road will bring more convenience to society at a cheaper rate. Afterall, the drivers’ portion of the earnings can be totally omitted now, a part absorbed by the autonomous taxi company and a part returned to the people.
Autonomous driving is already in place, and it is only a matter of time where companies start implementing this to their taxi ferrying services. There is no future in being a private-hire driver in the long run, although in the short term things should not change too much.
Other Related Sectors
Any job which has a low barrier of entry is doomed to face stiff competition. From being a Youtuber to an Instagram influencer, from a private-hire driver to food delivery, low barriers of entry meant that many unskilled or lower educated people could take part in the industry. A simple demand and supply balancing will mean that in the long run, the final state will not stand well for participants of the supply side.
Many retrenched middle-age workers and others who have difficulty finding a long term job turn to such industries, and many others have the naivety to think if things go downhill, the worst they could become is to be a private-hire driver or another job in a sector with low barriers to entry. It is one thing to turn to such jobs in desperation, but another to think that there is no need for any advance preparation when things go well, for such lower level jobs will always be a safety net.
Conclusion
Such jobs will not be a safety net for long. Such jobs do provide employment for many, but at the same time such jobs will only allow one to earn the bare minimum to survive. There will be no dreams to be achieved, no financial freedom to be gained, no decent lifestyle to sustain. Let not that few outlier success stories deceive you, but let the actual reality on the ground and the actual statistics tell you.
Afterall, if everybody can be rich easily, who then will deliver the pizza or ferry you in a taxi?
