Ryde has been granted a Class 1 third-party taxi booking service, and expects to offer dynamic pricing on taxi bookings by September.
ComfortDelGro, Singapore's largest taxi operator, will be launching a dynamic pricing system for its taxis from 19th January.
ComfortDelGro's flat fare option, which was launched yesterday, has already received 2,000 bookings; and the firm expects the volume to grow further.
ComfortDelGro has announced it will roll out a flat fare option on its cab-hailing app from 10th April, shortly after Grab's implementation of dynamic pricing.
The newly launched dynamic pricing fare option called JustGrab tended to be cheaper than Grab's own private-hire car service GrabCar.
'Dynamic pricing', as used by GrabCar and Uber, means private-hire cars are generally cheaper than taxis during off-peak hours and after midnight.
Surge pricing adopted by private-hire apps has drawn flak from some commuters, after fares rocketed during periods of exceptionally high demand.
The fares, which will range from a few dollars to $100, are quoted upfront and could be lower or higher than standard metered rates; depending on demand.
Grab declined to confirm what percentage of the cut it would take and would only say that it would release more details next week.
Dynamic pricing, also known as surge pricing, will be an additional option for commuters booking a taxi, on top of the current metered rates.
More commonly known as surge pricing, a system already in use by ride-hailing service Uber, the move will see fares fluctuate according to demand.
Grab will be rolling out a new taxi service - JustGrab - which will provide fixed upfront fares when booking a taxi but will also be subject to surge pricing.
Second Minister for Transport, Ng Chee Meng, said that taxi companies should ensure dynamic pricing improves with the supply and demand of taxi services.