Published:
ComfortDelGro to extend life of existing taxis to 8 years
It eyes replacing 500 taxis within 2017.
Whilst growth in its taxi business may have slowed down, ComfortDelGro was able to maintain its cab segment's margins.
According to RHB, ComfortDelGro plans to extend the life of existing taxis to their 8-year limits and is guiding for 500 taxis to be replaced in 2017.
"Whilst this would lead to slower rise in taxi rentals, capex would be lowered as well," RHB said.
The group also eyes to keep the taxi idle rate low and has already introduced schemes to retain drivers on the system. Last year's idle rate sat at 1.4%.
"We now estimate a steady decline in taxi fleet size, with idle rate gradually increasing to 3% by 2019," RHB noted.
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