Logo of Phnom Penh Post newspaper Phnom Penh Post - Taxis take on tuk tuks in capital

Taxis take on tuk tuks in capital

Taxis take on tuk tuks in capital

Tuk tuks, motos and unmarked taxis remain the dominant mode of transportation around Phnom Penh, but metered taxis are slowly gaining ground on the capital’s roads, according to Global Taxi’s Chief Executive Officer Andre Lim.

Global Taxi was started in July 2008 with a US$1 million investment from Chinese businessman Hu Guangxi, through his company Global Cambodia Trade Development Co Ltd, according to a report from Xinhua news agency.

“In the beginning there was some difficulty because customers had no habit of taking taxis.

“But now, almost three years later, I think the business is growing strongly,” Andre Lim told The Post.

Entering a “highly competitive” market has been a challenge.

Originally, the company predicted that within three or four months of its launch it would expand its fleet from 12 to 60 taxis, but growth has been slower than hoped.

Three years after opening the company now boasts a fleet of 40 cars, conducting about 800 to 1,000 journeys per day – a number the company hopes to double over the next two years. Of its customers, about 25 percent are foreigners.

While revenues and profits remain smaller than originally expected, the company has been in the black since its second year of operation and Andre Lim remains confident about the potential of metered cabs.

“I think in the long-term, there is a lot of potential for the taxis here,” he said.

Since its launch the sector has developed, with a second metered taxi company, backed by Korean investment, entering the market last year.

Some tuk tuk drivers are concerned about the new competition from taxis.

Ros Socheth, a 24-year-old moto and tuk tuk driver, originally from Prey Veng province, said he thinks taxis are the future for Phnom Penh.

“The government wants to make Phnom Penh grow as a city and build more roads.

“As the city expands I think the taxis will become more popular and have more power,” he explained.

Operating in a developing market with high fuel prices has also led Global Taxi to carefully evaluate its business strategy.

Its taxis will generally stay parked in one spot to wait for calls, as opposed to driving around looking for customers as is common in other more developed markets.
...read the full story in tomorrow’s Phnom Penh Post or see the updated story online from 3PM UTC/GMT +7 hours.

MOST VIEWED

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there

  • Cambodia lauded for fight against Covid-19

    Cambodia has drawn global accolades for its handling of the Covid-19 pandemic, with a new report finding that the Kingdom has controlled the pandemic better than any other country in Asia. Dr Takeshi Kasai, director of the World Health Organisation’s (WHO) Western Pacific region,