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Will Uber deal improve ComfortDelGro's taxi bookings?
This will depend on fares remaining competitive.
ComfortDelGro's exclusive deal with Uber will help improve the transport group's taxi bookings on the Uber app depending on two things.
According to RHB, whilst ComfortDelGro’s announcement states that its taxis would be made available on Uber’s app, the improvement on bookings will depend on fares remaining competitive.
Analyst Shekhar Jaiswal said taxi fares would be comparable to Uber's own service offering.
More so, there should be a seamless integration of its taxi booking system with Uber’s booking software solution.
"We would like to remind readers that the taxi booking option was available on Uber and Grab apps, when they were first launched in Singapore. However, cheaper fares offered by Uber and Grab for their own private car fleets and duplication of the booking system for taxi drivers led to the service being withdrawn by both ride hailing service providers," the analyst noted.
He added, "Although Grab has recently collaborated with local taxi companies (SMRT Taxis, Premier Taxis, Trans-Cab and HDT Singapore Taxi) to include their fleets on its platform, we note that Grab fares have since gradually increased. We assess this may have been necessary to bridge the fare differential between the cheaper Grab’s private car offering and the more expensive fares for its taxi partners."
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