ComfortDelGro's taxi yields slump 12% to $33.8m
But it is still doing better than its smaller taxi peers.
ComfortDelGro's taxi business struggled in Q1 as it recorded a $4.7m fall or 12% YoY in operating profit to $33.8m.
According to CIMB, this is due to its reduced taxi fleet size from an average of 16,200 this quarter to around 17,000 last year. More so, the group recorded higher taxi idling at 3.5% versus the zero idling rate during the same period last year.
Whilst ComfortDelGro is still doing better than its smaller cab firms in terms of fleet management and controlled taxi idling rate, CIMB noted that the group’s taxi profits will still ply dangerous roads.
"We think the group’s taxi profit is likely to remain under pressure in the near term due to stiff competition from Uber and Grab," CIMB said.
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