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5 Things You Should Know About ComfortDelgro Corporation Limited’s Singapore Taxi Business

ComfortDelgro Corporation Limited (SGX: C52) is a transport company with operations mainly in Singapore, Australia, the United Kingdom, and China. It is also the majority owner of vehicle and non-vehicle testing and inspection outfit, Vicom Limited (SGX: V01), and bus and rail services operator, SBS Transit Ltd (SGX: S61).

The company was in the limelight recently due to the challenges that it is facing in its taxi business.

In this article, we will learn more about its taxi businesses by looking at some information from its 2016 annual report.

  1. ComfortDelGro Taxi remained Singapore’s largest taxi operator with a combined fleet of 16,822 Comfort and CityCab taxis or 61% of the market, as at 31 December 2016.
  2. In November 2016, ComfortDelGro Taxi clocked 30 million booking jobs for the second consecutive year.
  3. Since the ComfortDelGro taxi booking app was launched in 2010, it has been downloaded 66 million times.
  4. ComfortDelGro Taxi, which was the first taxi operator to accept MasterPass, a cardless payment in 2015, became the first taxi operator in 2016 to accept mobile phone payments such as Apple Pay, Samsung Pay and Android Pay. These new payment modes, coupled with the return of VISA cards, resulted in a 10% growth in cashless payments.
  5. ComfortDelGro Taxi continued to look after the welfare of its taxi drivers. One of the ways in which it did so was to move away from the traditional fixed rental business model to one in which the company co-shares revenue risk with its hirers. This was a welcome move by taxi drivers, and over 2,200 of them have made the switch to this new rental scheme, as at the end of February 2017

Conclusion

The entrance of ride-sharing companies like Uber and Grab in Singapore is eroding the business of Comfortdelgro. Yet, given the importance of this business to the group, we would expect the company to defend its turf rigorously.

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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 Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool Singapore has a recommendation for SBS Transit Ltd.