A Sea of Change is About to Hit ComfortDelGro Corporation Limited: 4 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 four quotes that provides better perspective on the future of the transportation industry.

1. Breakneck speed – click here

2. A town centre without cars – click here

3. The rise of the humble bicycle

Singapore has more than 5,000 public buses and 28,000 taxis in operation. It also has five mass rapid transit (MRT) lines and three light rail transit (LRT) lines. In terms of passenger trips, three million trips are made on trains daily with another 3.9 million using buses. Taxis ferry one million people every day as well.

Lim, ComfortDelgro’s chairman, outlined another major change that is expected to happen in the future:

“To further promote a car-lite society, the Authorities have announced plans to build cycling paths with a target of 700 km by 2030.”

The Land Transport Authority’s website reported that every HDB town will have its own cycling network by 2030. These trails will connect commuters to MRT stations, bus interchanges, and nearby amenities. Underground bicycle parking at MRTs are also being considered.

4. Investing for the future

ComfortDelGro is devoting funds into technology advancements. Lim reported:

“We continue to invest significantly in technology and information technology.

In 2016, this accounted for about 1.1% of our total revenue, or about S$44.4 million.

For example, we invested S$1.5 million in the Mobileye Safety System in Singapore which assists our bus captains in their driving so as to avoid unnecessary accidents.”

Other areas include the implementation of mobile payments such as MasterPass, Apple Pay, Samsung Pay and Android Pay to facilitate faster payments. Meanwhile, the ComfortDelgro taxi booking app has been downloaded 3.66 million times. Lim also said that the taxi business clocked 10 million jobs on 15 April 2016, with half of the bookings coming from the app.

Time will tell if these investments pay off…

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