Some hirers prefer not to upgrade to newer models.
One ComfortDelGro's key focuses for this year is to retain existing taxi hirers, and keep taxi fleet idle rate low.
OCBC Investment Research highlighted that the transport group has been pushing out several forms of revenue and risk sharing scheme to hirers to retain them.
This comes with the group's statement saying they will review and may intentionally slow down taxi fleet renewal programme.
"The reason is because given the current competitive landscape, CDG’s existing hirers prefer not to upgrade to a newer model where rental costs will be higher," OCBC noted.
It furthered, "And by stretching the older model taxi fleet to the maximum regulatory lifespan of eight years, they are able to retain existing hirers by not increasing the rates as a result of fleet renewal."
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