ComfortDelGro - New flat fare option from 10 April onwards
- ComfortDelGro (CDG) announced yesterday that its taxi business will be introducing a new flat fare option on 10 Apr for taxi bookings made through its app, alongside metered fare option.
- The flat fare option takes into account the distance to be travelled and computes a fare based on existing surcharges. Once the flat fare option is chosen, there will be no additional surcharges levied (except if the passenger changes destination or makes unplanned stops along the way), and any travel delays due to traffic jams will not incur higher fares, unlike the metered fare option.
- Flat fares are currently not available for street hail, advanced booking and premium taxi services.
- Recall that Grab has partnered with five other taxi companies in Singapore to offer dynamic pricing fare option, using the same fare structure as GrabCar.
- While CDG stated that they are still exploring dynamic pricing where the fares fluctuate according to commuter demand, we believe this move does help close the gap between CDG’s fare structure and GrabCar/UberX’s fixed fare pricing structure, and consequently supports CDG in its focus to retain existing hirers.
- Reiterate BUY with an unchanged FV of S$2.95.