Seven cab companies currently operate on the streets of Singapore, but arguably the most familiar are the 15,000, blue Comfort and yellow CityCab taxis run by the ComfortDelGro Corporation Ltd (SGX: C52) which make up 62% of the Singapore taxi market share.
Indeed, when compared to cab costs in other cities around the world, Singapore’s taxis are reasonably priced, relatively easy to hail (well, unless you dare try when it rains or during change of shift) and an important, regular transport solution for thousands in the Garden City.
But did you know…
- ComfortDelGro is the world’s second largest transport company, with a fleet of 46,200 vehicles.
- It owns 75% of SBS Transit Ltd (SGX: S61). Not only is this the largest scheduled public bus operator in Singapore, it also runs the Sengkang LRT line and the Mass Rail Transit (MRT) North East and impending Downtown lines. ComfortDelGro also owns 60% of Vicom (SGX: V01), which operates seven vehicle-inspection centre in Singapore.
- ComfortDelGro has transport operations in the UK, China, Ireland, Australia, Vietnam and Malaysia, which account for 50% of its revenue. What’s more, it plans to increase this to 70% in the next five years.
And with the recent acquisition by its subsidiary Metroline of FirstGroup’s bus operations in London increasing its London bus market share from 12.5% to 19%, it is certainly continuing to grow – as well as giving shareholders geographic diversity.
Public transport shares may be seen as defensive and unexciting, but this can also provide stability no matter what the economy is doing.
Couple this with Singapore’s Land Transport Authority requiring potential car owners to place a monetary bid (currently $61k+) for a Certificate of Entitlement (COE) before they can even purchase a vehicle, you can see why public transport will continue to be the choice for many in Singapore at least.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.