Company had no intention of bowing out of the taxi business despite arrival of ride-hailing firms Read more at straitstimes.com.
SINGAPORE - Mr Cheng Siak Kian, who assumed the helm of home-grown transport giant ComfortDelGro, is not overly unsettled by ride-hailing firm Grab’s“Our taxi rental rates are not lower than Trans-Cab’s. If our hirers had wanted to go over, they would have gone over by now,” Mr Cheng said. “And it is not as if our drivers cannot use the Grab app. They can.
But it is no longer “a pure taxi company”. It has a small but growing private-hire fleet of around 600 cars, and its Zig ride-hailing app is becoming accepted, with around 4,000 private-hire drivers using the platform. He pointed out that taxi drivers were far more serious in their jobs – meaning that cabbies catered to more rides per day, and that taxis were still being hired out on two shifts. This translates to higher revenue yield for the group, which introduced a fare commission system last year. Commissions range from 5 to 10 per cent of total fares.“We will continue to have our day in the sun,” Mr Cheng said.
Mr Cheng said electrification translates to lower costs, as EVs require far less maintenance and electricity costs less than petrol or diesel.
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