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.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
