Strides-Premier merger is no threat to ComfortDelGro: analysts

ANALYSTS from UOB Kay Hian (UOBKH) and DBS Research remain positive on ComfortDelGro despite the announcement on Thursday (Apr 13) that two of its competitors, SMRT-owned Strides Taxi and Premier Taxis, will be merging to form Singapore’s second-largest taxi operator.

With ComfortDelGro maintaining its command over the majority market share, analysts see no downsides from the merger. The newly formed Strides Premier will own 2,502 taxis, lower than one-third of ComfortDelGro’s fleet of 8,741 taxis.

Instead, analysts believe that the consolidation could bring benefits to ComfortDelGro.