A new entrance of meter Taxis would facilitate an easy accessibility in Phnom Penh City, Cambodia.

A new investment of Chinese-invested Global Cambodia Trade Development Co Ltd provides Taxi services provision in Phnom Penh city, Cambodia. A fleet of 12 shiny new taxis was deployed on the streets of Phnom Penh over the weekend by the Chinese-invested Global Cambodia Trade Development Co Ltd. The service provision would facilitate a more easy accessibility for local resident and international tourists with the affordable price and comfortable travel in the city. The company has set a two-kilometer taxi ride cost US$1 and 400 Riels ($0.10) for each 200 meters. Taxis offer a greater service in terms of comfort and safety along with lower fares.

Phnom Penh governor Kep Chuktema said at city hall that the city strongly supported the new metered taxis. While he acknowledged the complaints of Tuk-Tuk drivers that “it’s a free market and everyone should compete.” Under the company’s agreement with city hall inked in November 2007, Global would deploy 12 more taxis in the next couple of week and would operate a fleet of 60 vehicles by September 2008, said Lim. The company has invested $1.5 million in setting up the service and expected to operate at a loss of $150,000 to $200,000 in the first year, he said.

However, a new entrance of meter taxis would make harder competition for Tuk-Tuk drivers while a new substitution service provider has more advantages in the same industry. Global Cambodia Trade Development CEO Andre Lim said the point was not to compete with other services.” We just want to provide more choices to people,” Lim said. Even though there is a clear statement of Global Cambodia Trade Development CEO, it will have unavoidable effects for the Tuk-Tuk drivers. Despite the fact that meter Taxis have a better service, it is optional service for the customer and it depends accordingly to the customers’ preference. The more service providers the more choices customers could make and the better serves is offered.

By CHHEM Samnang