ComfortDelGro eyes removing rental discounts for taxi drivers: RHB

This as the company waits to see the impact of the fare hike on taxi driver’s earnings.

ComfortDelGro (CD) is planning to gradually remove rental discounts for taxi drivers as it waits to see the impact of the fare hike for taxi businesses, which will take effect on 1 March, on taxi drivers’ earnings, according to RHB.

This is despite its extension of rental relief for its taxi drivers in March. It already offered 15% rental relief to its taxi drivers in January and February.

RHB, meanwhile, maintained that the reopening of Singapore’s economy and borders will back the land transport firm's earnings recovery.

Also, RHB added that re-rating catalysts should stem from higher ridership from CD’s rail business, eventual discontinuation of rebates offered to Singapore taxi drivers as well as higher earnings from overseas operations in Australia and the UK.

If the European region sees a sharp decline in economic growth, though unlikely, there remains a small risk of CD’s lower earnings in the UK.