The total fare will be displayed upfront before the customer books a taxi.
The prices will account for travel time, distance, booking fees, and real-time demand and supply of taxis, Grab said in a joint press release with SMRT on Friday (Mar 17).
This involves offering promotional incentives so consumers would choose taxis over private-hire auto services.
Fares will now vary according to passenger demand. It also launched an exclusive partnership with electric-taxi company HDT last month.
SMRT's fleet of more than 3,500 taxis expands Grab's network of drivers to more than 100,000 across its GrabTaxi, GrabCar and GrabHitch services.
I refer to the reports "Dynamic-pricing option for taxi operators approved" and "Cabbies may ignore street commuters during peak hours: Experts" (March 18).
SMRT Taxis and Private Hire Services managing director Tony Heng said more customers are open to having dynamic fares for taxi rides as the market has "evolved and matured significantly".
Grab was working with a small group of taxi drivers in a trial in Yangon, the biggest city, and would scale up gradually, the company said in a statement.
But to distinguish themselves from services such as Uber and Grab, taxi operators also need to ensure competitive rates for dynamic pricing, as well as to improve their service.