ComfortDelGro fast-tracks job creation to cushion Covid-19 impact on cabbies

Singapore

IT took around 10 days for ComfortDelGro Taxi to set up its delivery services app - a feat that would never have been accomplished so quickly under normal circumstances - chief executive officer of ComfortDelGro Taxi Ang Wei Neng told The Business Times.

The Covid-19 pandemic has spurred the company to roll out multiple initiatives over the past few months, creating delivery jobs that have cushioned the severe impact on the income of its taxi drivers in the face of dwindling ridership.

"These alternative delivery jobs have been critical in helping shore up driver income at a time when demand was down to almost zero. Without these jobs, many of our drivers would have found it hard to put food on the table, even with a full rental waiver," said Mr Ang.

When the government relaxed rules to allow taxi and private-hire car drivers to make grocery and food deliveries on March 29, ComfortDelGro Taxi was immediately on the lookout for delivery partners it could work with.

While rentals had already been waived for cabbies by then, Mr Ang said that the company was aware the "circuit breaker" period would have a "devastating" impact on cabbies' incomes.

By April 7, the firm had successfully tied up with bakery and restaurant chain Cedele. An arrangement with McDonald's followed two days later.

"We spared no resource hunting for delivery partners. More than 10 back-end staff spent hours on the phone and sending out countless e-mails to delivery platforms and F&B outlets," said Mr Ang.

Meanwhile, over 40 staff were deployed to accelerate the development of an internal F&B delivery platform that included the ComfortDelivery Driver app.

"Time was of the essence and we knew we needed to get it out fast," said Mr Ang. While there were some initial teething problems, most were ironed out and ComfortDelGro Taxi continues to work on the app.

ComfortDelGro Taxi has since secured partnerships with close to 50 F&B outlets, including KFC and Pizza Hut. Since the launch of its ComfortDelivery Driver app on April 29, over 2,000 taxis have been successfully onboarded to participate in delivery services for close to 1,000 food partners.

The firm has also tied up with ALPS, the supply chain arm of Singapore's public healthcare system, to allow its cabbies to deliver essential medicines to patients who require regular top-ups.

Taxis involved in delivery services have, overall, clocked about 70,000 trips, said Mr Ang.

Apart from delivery services, some 400 cabbies have been deployed to alternative jobs. These include providing transport services for Covid-19 suspected patients, or taking on roles as safe distance ambassadors, transport ambassadors and bus captains.

ComfortDelGro Taxi is a unit of ComfortDelGro Corporation, a land transport provider with operations in Singapore, Australia, China, Malaysia, Vietnam, Ireland and the UK. The Singapore taxi business derives its income from renting taxis out to cabbies.

Rental reliefs are expected to push ComfortDelGro Taxi into the red for the first time ever in FY2020 ending December, but analysts see moves to aid cabbies as beneficial in the long term. DBS analyst Andy Sim said in a report this month: "The reliefs given would enhance loyalty from its taxi hirers over the longer term."

As the tough environment caused by the outbreak edges out some competitors in the private hire space, Mr Sim said the company could also enjoy more sustainable dynamics.

Since the start of phase one of Singapore's reopening, the number of trips for each taxi has increased by more than 30 per cent on average, said Mr Ang. But with most people still working from home and without the usual stream of business from tourists, he reckoned it will be a while before activity returns to pre-Covid-19 levels.

On whether these initiatives will be sustained after the pandemic blows over, Mr Ang said: "What happens once things go back to normal will really depend on regulations and whether there is sufficient demand."

Separately, ComfortDelGro announced on Tuesday that it will be installing soft plastic shields in all 163 training cars at its driving centre in anticipation of phase two of Singapore's reopening. Learners will be required to wear face masks while instructors have to wear face masks, put on goggles and wind down the windows during practical lessons.