Updated: Nov 30, 2020
We all heard it a long time ago in Oct 2014 when LTA called for a tender for the development of a next gen ERP system.
On September 8, 2020, the Land Transport Authority (LTA) announced that the installation of On-Board Units for Next-Generation ERP System to Commence in Second Half of 2021. At the same time, an article in the The Straits Times announced that the new ERP system will implemented 2023 but not based on a distance-based charging as yet.
Assuming it is inevitable and just a question of time that distance-based charging will be implemented, the change in the ERP system will impact not just drivers but also businesses and their business models.
Imagining how the new ERP system shapes behaviours is going to be an interesting one to predict in time to come. At the individual level, a gathering of friends over a meal that traditionally ends with the driver sending everyone home is going to be thought of differently from the driver's perspective with the change. In the current ERP and road tax system, ERP is a "pay as you use system" but the road tax is seen as a "fixed cost" of owning a car. All that is going to change when distance based charging is implemented the driver in this scenario is paying not only for the cost of petrol (usually negligible) but also the distance charge to send his friends home. How will this affect drivers' behaviour? It remains to be seen.
At the business level, transportation companies such as taxis and grab will need to understand and adapt to the new distance based charging system and re-cost their fees. Also, companies that require their employees to travel for business and pay out a fixed transport allowance will be forced to re-think their transportation allowance systems. These are just 2 examples among numerous other business adaptations that will be required with the change in system.
I am sure LTA will be communicating and giving sufficient time for individuals and businesses to prepare for this big change.
Busy executives out there who have absolutely no time to send their cars for servicing and grooming or loathe waiting at the workshops for their cars to be ready will be dreading the compulsory "upgrade" of their IU systems coming up.
BookValet offers the solution and convenience for drivers to arrange pick up of their vehicles sending it for servicing/repairs and sending the vehicle back on the same day to the location of your choice. We will be studying into the feasibility of assisting car owners send their cars for IU change once more information is released. You will be able to book the service once you have secured an appointment slot with registered workshops for the IU change on this link.
In the meantime, if you have a need for sending your car for grooming or to the workshop for servicing/repairs, the cost is reasonably priced at $80.00 for the 2 way transport as well as coordination with the workshop of choice for the car works.
Check out the service below:
Company Name: BookValet
Contact No: 9876 2718