Brokers’ take | The New Paper

After numerous taxi companies, including ComfortDelGro (CDG), earlier this year submitted plans to the Public Transport Council (PTC) as they seek to introduce dynamic pricing of taxi fares (i.e. flat fee structure with no surcharges that is similar to the private hire cars’ fare structure), PTC and Singapore’s Land Transport Authority (LTA) on March 17 gave the green light as they said they have no objections to the proposals submitted.

In our view, the move by five other taxi companies operating more than 10,600 taxis in total to partner Grab to offer dynamic pricing fare option through the new JustGrab function in the Grab mobile app will greatly dilute the market for GrabCar drivers.

We believe this move will further level the playing field between taxi companies and private hire car service providers.

Therefore, as we expect increase in dividend yield over time as CDG receives cash from the sale of bus assets to LTA, reiterate “buy” on CDG with an unchanged FV of $2.95.

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Brokers’ take, Latest Business News – The New Paper.