Pandemic could give ComfortDelGro's taxi business a lift

THE coronavirus pandemic has been destructive but it could prove to be a blessing in disguise for mainboard-listed transport giant ComfortDelGro Group, as a dampening of demand seems to have catalysed the private hire industry's right-sizing.

The number of private hire cars has been declining for six straight months from its peak at 77,815 in February to 72,679 in August, the latest statistics from the Land Transport Authority showed. It would appear that the coronavirus has stopped these taxi competitors in their expansion tracks.

In contrast, the taxi population added 178 units to reach a total of 16,264 in August. This represented a rebounding from the trough at 16,086 in July and a reversal of a downward trend that began in May 2015. The ride-hailing operators began making their inroads into Singapore in 2013.