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Hot stock: ComfortDelGro stock revs up on news of possible tie up with rival Uber
COMFORTDELGRO stock revved up on news that it plans to car-pool with its competitor and ride-hailing stalwart Uber.
The counter was most active on Wednesday's early trade with 16 million shares worth S$38 million done. As at 9.19am, the stock has surged 23 Singapore cents or 10.6 per cent to S$2.40.
After market close on Tuesday, the land transport giant, which operates Comfort and CityCab taxis here, announced that it was in exclusive discussions regarding a "potential strategic alliance".
It disclosed that it had signed an exclusivity letter with Uber Technologies to explore forming a potential strategic alliance that may include "collaboration in relation to management of fleet vehicles and booking software solutions in Singapore".
It may also include making its taxis available on Uber's app.
"Overall, despite a lack of details, we think this development is positive for ComfortDelGro and could work in favour of its share price," said DBS Group Research.
"This move could also signal to the market that the company's management is acting on market changes, and are looking for ways to counter the challenges," the research house added.