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Are ComfortDelGro taxis keeping up with Uber, Grab?

Singapore Business Review
Are ComfortDelGro taxis keeping up with Uber, Grab?

Hire-out rate remains close to 100%.

Despite the booming popularity of ride-hailing apps like Grab and Uber, ComfortDelGro still stood their ground, managing to maintain a close to 100% hire-out rate.

According to RHB analyst Shekhar Jaiswal the group's taxi business has seen negligible impact from rising competition presented by Uber and Grab.

"Its taxi hire-out rate remains close to 100% and revenue grew 6-7% in 3Q16," he said.

The RHB analyst noted that while he expects the growth of its fleet to decelerate, its taxi rental rates should rise as it continues to replace older cars with newer taxis.

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OCBC Investment Research analyst Eugene Chua also have the same thing in mind, noting that taxi earnings should remain stable as ComfortDelGro continues its fleet renewal programme.

"Management also noted they are making progress with respect to M&A activities, with discussions still on-going with its target," Chua said.



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