ComfortDelGro - RHB Invest 2025-01-06: Platform Fee Hike Is Earnings Neutral; Reiterate BUY

• ComfortDelGro, along with other ride-hailing players in Singapore, have increased the platform fee. This increase covers the rise in costs, mainly related to the employer’s contribution to the Central Provident Fund (CPF) amidst the implementation of the Platform Workers Act.
• - Read this at SGinvestors.io -

Increase in platform fees.

• Starting 1 Jan 2025, the ride hailing service providers in Singapore (i.e. Grab, Gojek, Tada and ComfortDelGro’s Zig), have hiked the platform fee at 20-50 cents. ComfortDelGro has raised its platform fee by 30-50 cents, from a flat rate of 70 cents to a range of S$1 to S$1.20 based on distance travelled and travel time.
• - Read this at SGinvestors.io -
• Platform operators will begin by contributing 3.5% of a worker's net earnings in 2025. This will increase gradually until it reaches the level of contributions made by non-ride-hailing or delivery companies in 2029. We see no material impact on the earnings from this increase in platform fees.

ComfortDelGro is offering fixed driver commissions to boost bookings and app usage.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2025-01-06 SGinvestors.io

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