Comfort Delgro

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(20-09-2017, 08:06 PM)Millionfaith Wrote: Maybe someone can enlighten me...I am not sure for Singapore, but in New York, a taxi license cost several hundred thousands and had even hit a high of one million....and Uber is available in New York?? And the regulator or authority lets it???

I also remembered someone told me how difficult to get taxi license in London....It's like a rare commodity.

Why is there no need for stricter regulation, for example how many private hire to be allowed? The current private hire cars reminds me of the old days "Ba Wang Che" except that the price is fixed.

This could be what CDG did not expect.  For a long time barrier to entry is very high.  Under such environment CDG thrive as they know how to play the market. Out of a sudden a disruptor comes in and surprise surprise ... regulator is allowing it.  Honestly I wasn't expecting it either. So the playing field totally changed. It does seem strange that out a sudden 2 barriers to entry are significantly lowered: 1. barrier to be a "taxi" driver and 2. barrier to use private vehicle as a "taxi".  The rule to disallow flag down for Uber and Grab is not a big hindrance as they circumvent it with the mobile app, in a nation with 150% mobile penetration - 90% smartphones.  In fact the Uber/Grab apps makes is so much more convenient to get a ride.  It converts the most unpleasant part of the taxi journey to a fun/entertaining/pleasant "ride hailing" journey.  Have tried Just Grab and Grab Hitch.  Service is not too bad though have encountered unpleasant moments.  What totally blows me over was the experience trying to flag a taxi to go to  airport.  After 10 mins of frustration I tried Grab, with success within 1 mins and it turns to a wonderful and pleasant experience. Grab customer service is also very good.  They took my feedback seriously and responded quickly.  Seems like Grab is a worthy adversary.  A worrying time for CDG.  Will it be a Kodak moment for them? - the negative kind, not the positive Kodak moment unfortunately.  I'm half expecting this whole business case to appear in a MBA curriculum soon.

*vested in CDG for a long time and now under serious re-evaluation*
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Excerpt from AR 2016 (Chairman note) ...

... Despite strong competition, out Taxi business held its own through its award-winning booking app. new features were added to make booking that much easier for the commuters. as a result, call booking volumes remained strong. cashless transactions also increased during the year with the return of VISA cards.

We continue to assist and support our drivers who are our close working partners. for example, we introduced an assistance fund during the year to help those who find themselves in need for urgent financial assistance as the economy slows.

We also award our loyal customers with attractive, practical and sustainable promotions from time to time. we remain committed to improving our overall service levels to both our drivers and their passengers.

To this end, we have made significant investments and continue to be the leading taxi operator with a fleet size of close to 17,000 taxis or 61% of the market as at 31 Dec 2017.


It seems like "kaki kong kaki song" (self praise). 

  1. Do taxi uncles feel like CDG treating them like partner. Why squeeze them for high rental fee?
  2. Cashless with VISA? Go cashless with QR
  3. Improve booking and more satisfy customers? Tio bo?
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Is CDG management do the right things retain their drivers (partners)?  Big Grin


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from AR 2016

Taxi

ComfortDelGro Taxi remained Singapore’s largest taxi operator with a combined fleet of 16,822 Comfort and CityCab taxis.

Despite strong competition, ComfortDelGro Taxi’s volume of booking jobs remained strong during the year. It clocked 10 million booking
jobs on 15 April 2016 as its taxi booking app gained in popularity, accounting for half of total booking jobs. An upgraded despatch algorithm and active marketing promotions also helped boost demand. New records were also set for the highest number of successful booking jobs achieved in a single day.

In November 2016, ComfortDelGro Taxi clocked 30 million booking jobs for the second consecutive year. Not only was the 30 millionth passenger  rewarded with a promo code worth S$300, the lucky cabby, who had picked the passenger up, also received S$300 worth of vouchers. To mark the 1 Includes sub-contractors’ buses annual report milestone, ComfortDelGro Taxi waived S$8 off the metered taxi fare for the first 1,000 passengers, between 3pm and 3am for seven days, and waived the call levy fee of all bookings that its taxi drivers accepted over two days.

Since the ComfortDelGro taxi booking app was launched in 2010, it has been downloaded 3.66 million times. Through it, passengers are able to rate the service levels of taxi drivers the moment trips are completed. In 2016, many of the taxi drivers were encouraged by the five-star ratings that they had received.

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.

As part of its marketing efforts, ComfortDelGro Taxi went on social media in 2016 – Twitter (@CDGtaxi_sg) in January; Instagram (@cdgtaxi) three months later in April; and Facebook (@ ComfortDelGroTaxi) in October 2016.

More than 80 promotions, offering discounts off taxi fares, were pushed out across these platforms. To-date, over 36,000 followers have liked these accounts.

Always conscious of its carbon footprint, ComfortDelGro Taxi upped its Green quotient by trialling two Toyota Prius petrol-electric hybrid taxis
in January 2016, and rolled out 200 more by the end of the year. Another 1,000 Prius taxis are expected to replace the Hyundai Sonata taxis over the next two years. The Company also started to trial the Hyundai Ioniq petrolelectric hybrid taxi, which is similar to the Prius.

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 as at end-February 2017, over 2,200 of them have made the switch to this new rental scheme.

A third round of health screening and coaching sessions under the “Check Car, Check Body” health screening and intervention programme, which was launched more than two years ago, was conducted in July 2016. About 3,900 taxi drivers participated. Since its launch,
some 11,000 taxi drivers have benefited from the programme.

In addition, the free access that taxi drivers have to ActiveSG facilities such as gymnasiums and swimming pools every Wednesday was extended for another two years until the end of 2017. The Company also partnered ComfortDelGro Insurance Brokers Pte Ltd and AXA Insurance Singapore to offer taxi drivers free eye checks.

The Company continued with the tradition of extending financial aid to its taxi drivers by helping them defray the educational fees of their children.

In 2016, 1,531 Primary and Secondary level students received over S$220,000 worth of study achievement awards,
more than double the number of students who qualified in 2015.

In December 2016, ComfortDelGro Taxi launched its first-ever Cabby Hardship Fund to assist its taxi drivers and their immediate families who require financial aid arising from death, total and permanent incapacity, as well as serious chronic medical conditions. Managed by a committee made up of Management staff and the Company’s taxi representatives, it assesses all aid requests and disburses the funds based on the merits of each case.

ComfortDelGro Taxi kick-started the Fund by donating 50 cents for every booking job completed by taxi drivers on Christmas Day and collecting
donations from staff. Over S$50,000 was raised as a result.

For all its efforts, ComfortDelGro Taxi was named the Favourite Taxi Agency at the Travellers’ Choice Awards by TripAdvisor for the third year running.
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http://www.todayonline.com/singapore/com...-month-low

SINGAPORE — ComfortDelGro, which is facing an exodus of drivers jumping ship to its rivals, has seen the size of its taxi fleet fall sharply in recent months in line with the industry trend, based on latest Land Transport Authority (LTA) figures.

As of July, there were 15,472 Comfort and CityCab taxis on the books of Singapore’s largest taxi operator — including those sitting idle — compared with 16,495 in January. The figure for July — which was the seventh consecutive month of decline — was about 10 per cent lower than the peak of 17,143 in April last year.
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(21-09-2017, 09:15 AM)yeokiwi Wrote: http://www.todayonline.com/singapore/com...-month-low

SINGAPORE — ComfortDelGro, which is facing an exodus of drivers jumping ship to its rivals, has seen the size of its taxi fleet fall sharply in recent months in line with the industry trend, based on latest Land Transport Authority (LTA) figures.

As of July, there were 15,472 Comfort and CityCab taxis on the books of Singapore’s largest taxi operator — including those sitting idle — compared with 16,495 in January. The figure for July — which was the seventh consecutive month of decline — was about 10 per cent lower than the peak of 17,143 in April last year.

“ComfortDelGro’s decision basically is to look at the numbers and say ‘it’s better for us to try to improve our margins and get rid of vehicles that we cannot profitably rent out, rather than increase our rental numbers (by) reducing rental rates,” Dr Theseira noted. Unlike the taxi operators, Grab and Uber can afford to price their services possibly below “their real costs of doing business” to build a commanding market position — even at the expense of short-term losses, he reiterated.

Price war will continue. Grab and Uber continue to use pricing strategy to increase their market share.
How will CDG response this threat?
Big Grin
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An asset heavy company (CDG) fighting companies on an asset light structure (Uber & Grab). It is not looking like a fair fight.

For Uber/Grab, it is like a tuition industry - anyone can drive and as it is not a full time job, the revenue these drivers demand may not be necessarily high (maybe they are willing to earn $15/hour after all cost). Conversely, for taxi drivers, this is their main livelihood. Will CDG taxi drivers be willing to take home less than $3,000 per month?

And for drivers doing Uber/Grab full time, the private car rental rates are lower than CDG rental rates. If CDG really wants to compete, my stance is still the same - lower your high rental rates to help your drivers

And to the Prof suggesting CDG to diversify- (i) you cant increase profitability of SBS transit without making the public pay more for transport, (ii) CDG is already expanding overseas but competing in this overseas industries shows you the lower profit margin, (iii) CDG had been benefiting from Singapore Govt policies to maintain profits and these disruptions are tearing into CDG's profits. It shows how much govt regulation has been "artificially inflating" CDG profits
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If management of CDG still refuse to change their monopoly mindset , then they will have more to change in their future.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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We are seeing a gradual demise of the traditional industries and specifically GLCs.

NOL was gone.
ComfortDelgro is panting.
SPH is selling papers that nobody wants to read
Mediacorps is producing dramas that nobody watches.
Keppel and Semcorp.. not sure whether they can survive the oil and gas downturns.
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Can Uber Make a Profit?

“Disruption is easy but making money off disruption is difficult, and ride-sharing companies would be Exhibit 1 to back up the proposition,” writes Aswath Damodaran, professor of finance at NYU’s Stern School of Business, in a recent blog. “While the ride-sharing option is here to stay and will continue to grow, ride sharing companies still have not figured out a way to convert ride sharing revenues in profits.”

Damodaran says Uber follows “a flawed business model,” burning through capital as ride prices continue to fall and competing services enter the marketplace.
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(21-09-2017, 10:38 AM)yeokiwi Wrote: We are seeing a gradual demise of the traditional industries and specifically GLCs.

NOL was gone.
ComfortDelgro is panting.
SPH is selling papers that nobody wants to read
Mediacorps is producing dramas that nobody watches.
Keppel and Semcorp.. not sure whether they can survive the oil and gas downturns.

still got a few sectors, big fat cats, education, insurance, finance & banking sectors too... hope these will results in low cost and better value services, Smile
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