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Comfort Delgro
08-12-2017, 09:49 PM, (This post was last modified: 08-12-2017, 10:00 PM by opmi.)
Post: #291
RE: Comfort Delgro
51-49 split for the losses in a war of attrition with Grab. See who dies first.

CD acquire new shares or vendor shares in LCR?
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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09-12-2017, 12:48 PM, (This post was last modified: 09-12-2017, 12:50 PM by CY09.)
Post: #292
RE: Comfort Delgro
The rental car company, lion city rental, isn't a high ROA business. Cars are being rented out at $50-$55/day, despite the 110k price tag of a car and the 2+k annual road tax and maintenance fee.

I guess CDG had to pay a price to tap into Uber's patented algo technology.

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09-12-2017, 08:48 PM,
Post: #293
RE: Comfort Delgro
CIMB said Lion City Rental is in net debt of S$1bil as of Dec-16. So Comfortdelgro will also inherit the debt?

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09-12-2017, 08:57 PM,
Post: #294
RE: Comfort Delgro
Yes, which is why CDG paid only $295 million in cash consideration for a 51% stake (note they inheriting only 51% of the debt if I am right)

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09-12-2017, 09:47 PM,
Post: #295
RE: Comfort Delgro
(09-12-2017, 12:48 PM)CY09 Wrote: I guess CDG had to pay a price to tap into Uber's patented algo technology.

What technology is that? What does it do?

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14-12-2017, 02:36 PM,
Post: #296
RE: Comfort Delgro
(09-12-2017, 12:48 PM)CY09 Wrote: The rental car company, lion city rental, isn't a high ROA business. Cars are being rented out at $50-$55/day, despite the 110k price tag of a car and the 2+k annual road tax and maintenance fee.

I guess CDG had to pay a price to tap into Uber's patented algo technology.


Assuming they can rent out the car for 300 days per year  (about  82% utilization )

Total revenue = $50 x 300 x 10yrs = $150,000

Total car cost = $110,000
Road Tax = $2000 x 10 = $20,000

Assuming Maintenance cost about $1k to 2k per year.
Maintenance = $1500 x 10yrs = $15,000 

Total Profit = $150,000 - $110,000 - $20,000 - $15,000 
       
=  $5,000  for renting out the car for 10 years  !!!

Anything goes wrong they will incurred losses !

This kind of business can do meh ?  Big Grin

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14-12-2017, 02:48 PM,
Post: #297
RE: Comfort Delgro
(14-12-2017, 02:36 PM)Layman A Wrote:
(09-12-2017, 12:48 PM)CY09 Wrote: The rental car company, lion city rental, isn't a high ROA business. Cars are being rented out at $50-$55/day, despite the 110k price tag of a car and the 2+k annual road tax and maintenance fee.

I guess CDG had to pay a price to tap into Uber's patented algo technology.


Assuming they can rent out the car for 300 days per year  (about  82% utilization )

Total revenue = $50 x 300 x 10yrs = $150,000

Total car cost = $110,000
Road Tax = $2000 x 10 = $20,000

Assuming Maintenance cost about $1k to 2k per year.
Maintenance = $1500 x 10yrs = $15,000 

Total Profit = $150,000 - $110,000 - $20,000 - $15,000 
       
=  $5,000  for renting out the car for 10 years  !!!

Anything goes wrong they will incurred losses !

This kind of business can do meh ?  Big Grin

Your road tax of $2k a year is too high
Most of their cars are 1.6l
And the tax is $972 p year

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14-12-2017, 03:15 PM,
Post: #298
RE: Comfort Delgro
(09-12-2017, 09:47 PM)touzi Wrote:
(09-12-2017, 12:48 PM)CY09 Wrote: I guess CDG had to pay a price to tap into Uber's patented algo technology.

What technology is that? What does it do?

I do not think there are any rocket science in it that can give them significant edge in booking/pricing else grabs would have already fall apart and so are many taxi companies in the world who has their own apps.


Cory

Just my Diary
corylogics.blogspot.com/



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14-12-2017, 04:01 PM, (This post was last modified: 14-12-2017, 04:02 PM by CY09.)
Post: #299
RE: Comfort Delgro
For the estimation, I would lump road tax & maintenance tgt at a cost of $2,000 annually.

This means Lion City may earn 20k for renting out its cars over a 10 year period. However considering that it has to have cash upfront for a 10 year car and have to undertake loan for it, the annual returns is very low.

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