Over 3,000 drivers could switch to Grab.
Grab drives another blow to ComfortDelGro's (CDG) taxi business by extending its discount campaign for drivers to 6 October 2017.
According to OCBC Investment Research, the number of CDG’s taxi hirers who may switch to Grab has increased to more than 3,000.
Grab first offered a $50 discount per day for six months to CDG’s taxi hirers if they switch over to any of Grab’s taxi-fleet partners. The company also gave higher discounts if they rent a private-hire car directly from Grab.
OCBC analyst Eugene Chua commented, " In our view, this exodus of drivers could spell trouble for CDG as its taxi earnings are heavily dependent on rental income – the sudden and significant reduction in taxi hirers will certainly impact its taxi revenue, and translates to weaker operating margins."
Do you know more about this story? Contact us anonymously through this link.