A Sea of Change is About to Hit ComfortDelGro Corporation Limited: 2 Must-Read Quotes from Management

ComfortDelGro Corporation Ltd’s (SGX: C52) could be facing drastic changes in the years ahead.

Technologies such as artificial intelligence and driverless cars are gaining ground, and the implications to ComfortDelGro Corporation’s business could be significant. To gain more context, I took a look at ComfortDelgro Corporation’s 2016 annual report.

From it, I found two quotes that provide better perspective on the future of the transportation industry.

Breakneck speed

Lim Jit Poh, Chairman of the firm, acknowledged the pace of change that is coming:

“In the field of technology, we are also witnessing the rapid evolution of the Fourth Industrial Revolution as technological advances are moving at breakneck speed and artificial intelligence is becoming a reality.”

In the second quarter, ComfortDelGro Corporation’s taxi revenue fell 10.7% year-on-year due to a lower fleet size, and lower international sales. In Singapore, the firm is likely facing competition from upstarts such as Grab and Uber. Both challengers entered the Lion City less than four years ago.

A town centre without cars

Lim also spent the time to talk about expected long-term changes in the local economy. He highlighted the report from the Committee on the Future Economy (CFE) which outlined some key changes:  

“Tenders for the redevelopment of the Jurong Lake District as the second central business district have been called.

Plans are also afoot for the Mandai Makeover and a new Tengah Township. The latter, a new town development, comes after a lapse of 20 years and will feature a forested setting together with some ‘smart’ elements. It will include Singapore’s first car-free town centre as part of the car-lite efforts.

All roads will get dedicated walking and cycling paths”

Plans are afoot in developing town centres without cars. Instead, roads will be dedicated to cycling paths and walking paths. To be sure, there could still be room for public transportation to be provided in the area.

As it stands, we will have to wait for more details on the role that ComfortDelGro Corporation can play in the future of Singapore’s transportation.   

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.