Taxi segment could rev up ComfortDelGro’s shares, but rising costs and competition are potential speed bumps
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TRANSPORT operator ComfortDelGro Corporation is looking at a smooth road ahead for its taxi segment, amid several positive developments.
A massive downsizing cut by ride-hailing operator Grab last month suggests it is much less likely to engage in destructive competition. Grab’s CEO Anthony Tan said the company needed fundamental changes to its operating model and cost structure to build a long-term competitive advantage.
Meanwhile, ComfortDelGro’s move to implement a new platform fee for its booking app CDG Zig should drive profits. Such a fee is already standard practice among ride-hailing platforms.
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