Despite 'taxi booking' has been made available through Uber/Grab's platform some time ago, it is important to also note that most rider uses Uber/Grab's private-hire rather than CDG's taxi as it is a cheaper alternative. The promotion given to rider could easily allow rider to travel between short distances for free or maybe as cheap as $1.
As mention previously in the post regarding CDG's FY2017 Q2 report, taxis has been a very significant contributor to ComfortDelGro's business and revenue for taxi business has dropped by 10.7%.
With the possible collaboration between CDG and Uber, CDG is able to leverage Uber's platform by making Comfort's taxi available through the Uber app. This measure taken by CDG to collaborate with Uber will be able to ensure more bookings for comfort taxi drivers. This move taken by CDG to partner with the disruptor will in time brings in greater revenue for CDG's declining taxi business.
However, it will not be effective if the prices of trips were to remain high for rider that uses Uber for a cheaper alternative to cab.
There is no confirmation that the alliance will materialized and final structure remains unclear.
Information can be found here.
ST report about possible alliance can be found here.
CDG raises white flag. When you cannot beat them; join them.
ReplyDeleteHi Uncle CW,
DeleteThank you for dropping by!!
Yes. When you can't win them, join them.
Smaller taxi providers in Singapore and hence joined Grab earlier.
Apparently in today's market, the number of people that is positive about this alliance is impressive.