UberFlash can lower taxi idling rate of c.5%: CIMB

Despite UberFlash being priced lower than CD’s current base fare of S$3.20 to S$3.90.

CIMB reports that the new UberFlash, an app for the joint venture of Uber Technologies and ComfortDelGro (CD), can lower taxi idling rate of c.5% as CD drivers could upgrade to UberFlash during peak hours for a higher surge pricing.

UberFlash is currently priced lower than CD’s taxi base fare of S$3.20 to S$3.90 and fare/km of S$0.55 to S$0.63.

Here’s more from CIMB:

Among the catalysts include earnings accretion from the LCR acquisition, higher-than-expected dividend announced in the upcoming 3Q17 results; whilst downside risks include LCR being an unprofitable entity, rendering the deal non-accretive; and lower-than-expected dividend announced in the upcoming 3Q17 results.