I forsee one big problem ahead. Currently, there are many people who do not have a regular job but are able to make a living by being a private hire driver under Grab and Uber. They include PMETs who were retrenched and the graduates who could not find a job.
The earnings from being a private hire driver is quite attractive. But this was largely financed by the promotions offered by Grab and Uber. These promotions must cost massive losses for these companies and are burning up their venture capital. This can continue only for a while.
When Grab and Uber stops their promotions or burn up their venture capital, the demand for taxis and private hire will drop sharply. The private hire drivers will see a big decline in their earnings. The massive over-supply of taxis and private hire cars will be felt.
The taxi drivers and the private hire drivers will be badly affected.
I see this happening during the first half of this year. It will be very painful for many people. I hope that some of the taxi and private hire drivers have other alternative jobs, so that the supply will be moderated.
Maybe, I am wrong and the happy situation can continue for a year or so. What are your views?
The earnings from being a private hire driver is quite attractive. But this was largely financed by the promotions offered by Grab and Uber. These promotions must cost massive losses for these companies and are burning up their venture capital. This can continue only for a while.
When Grab and Uber stops their promotions or burn up their venture capital, the demand for taxis and private hire will drop sharply. The private hire drivers will see a big decline in their earnings. The massive over-supply of taxis and private hire cars will be felt.
The taxi drivers and the private hire drivers will be badly affected.
I see this happening during the first half of this year. It will be very painful for many people. I hope that some of the taxi and private hire drivers have other alternative jobs, so that the supply will be moderated.
Maybe, I am wrong and the happy situation can continue for a year or so. What are your views?
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