What is the shift in rental car usage for ride-hailing versus self-drive?

Question

Accepted Answer

The Number of Self-Drive Rental Cars Has Increased While Those for Ride-Hailing Has Decreased

The landscape of rental car usage in Singapore has seen a notable shift, with a rise in self-drive rentals contrasting with a decline in those utilized for ride-hailing or chauffeured services. Between the end of 2025 and June of the following year, the number of self-drive rental cars grew from 33,765 to 36,317. Concurrently, rental cars designated for ride-hailing or chauffeured purposes saw a slight reduction, decreasing from 62,092 to 61,250 over the same period.
Increase in Self-Drive Rental Vehicles

The segment of the rental market catering to self-drive needs has experienced consistent growth. This increase from 33,765 units at the close of 2025 to 36,317 by June indicates a growing demand for personal, unassisted vehicle use through rental services. This trend aligns with broader market observations where rental demand is generally on the rise, though operators maintain caution regarding fleet expansion due to COE price volatility.
Decline in Ride-Hailing and Chauffeured Rental Cars

Conversely, rental vehicles employed for ride-hailing and chauffeured operations have seen a contraction. The figures show a dip from 62,092 to 61,250 between the end of 2025 and June. This decrease may be partly attributed to a regulatory measure implemented in February 2025, which imposed a three-year lock-in period on business-owned ride-hailing vehicles, restricting their sale or conversion to private use during that time.
Broader Context of Rental Car Growth

These specific shifts occur within a larger context of increasing rental car numbers overall. The total number of rental cars reached a record 97,567 at the end of June, making up 14.9 per cent of Singapore's total car population. This expansion in the rental fleet, despite operator caution, reflects a growing trend towards leasing and car-sharing as high ownership costs, particularly Certificate of Entitlement premiums, push some motorists away from outright car ownership.

Reading history

Hide →

This history is cleared when the page is closed.

What is the shift in rental car usage for ride-hailing versus self-drive?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends