ComfortDelGro - Maybank Research 2025-04-10: A Shelter From The Tariff Storm

• Singapore’s transport regulator LTA recently awarded a street-hail service operator licence to GrabCab (valid for 10 years effective 9 Apr), bringing the total number of taxi operators to 6 in Singapore.
• While we expect sector competition to increase, the actual impact might be somewhat muted as street hailing volumes have been on a secular decline and account for only 10-11% of total P2P trips.

New player of street-hail likely needs time to scale up.

• - Read this at SGinvestors.io -
• GrabCab will sponsor the Taxi Driver's Vocational Licence course fees for aspiring cabbies and 6 months of the National Taxi Association membership fees for new members. It plans to launch a 100% green fleet consisting of low-and zero-emission hybrid and electric vehicles.

Taking a wait-and-see stance before responding

• - Read this at SGinvestors.io -
• ComfortDelGro is adopting a wait-and-see approach on what kind of rental rates/incentives GrabCab will offer, as well as how aggressive they are in building their fleet before taking any decisions on new measures.
• To fend off competition, ComfortDelGro earlier expanded its premium offerings by introducing new Toyota Alphard Hybrid taxis with limousine-style service, and can accommodate up to 6 passengers.

1Q25 results preview: Expecting strong y-o-y growth.

• Read more at SGinvestors.io.

Eric Ong Maybank Research | https://www.maybanktrade.com.sg/ 2025-04-10

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