Alliance between Uber and Comfort

This is how I see the alliance between Uber and Comfort.

Uber fought against Grab and seemed to have lost the battle. Grab was able to get more riders to join them due to their attractive promotions. More drivers also joined Grab, as they get more business.

Grab is bleeding. But they seem to have deep pockets (thanks to big funds from Temasek).

Comfort is also losing out in this competition. Fewer riders are calling them or using their apps.

Through the alliance, Uber can reach out to more drivers. But Comfort could have done it on their own without Uber. Comfort has already developed a mobile app, which should be working well.

The real issue is - who can give the generous promotions that Grab is now giving and continue to bleed to gain market share?

The danger of this business strategy is that the riders will accept your promotion, but they can easily move to your competitor when you stop your promotion.

Most customers would check Uber and Grab for the best price and take the best offer. I am one of them.

This kind of cut throat competition is not good for the market in the long run. I expect that it will be more regulated after the initial period.