Wednesday, February 14, 2018

How can a traditional taxi company respond to the challenge from the new platforms

Comfort Delgro's profit dropped by $53 million, mainly due to the weak taxi business.…/comfortdelgro-posts-115-fall-o…

The faced strong competition from Grab and Uber. This challenge is faced by traditional taxi operators. How can they meet the challenges?

My view - they should adopt a strategy that focus on their strengths, rather than compete with Grab and Uber on their strengths.

Comfort Taxi's strengths are:

a) A large base of taxi drivers.
b) Their taxi drivers are more experienced
c) Commuters are used to metered fares.

Grab / Uber's strengths are:

a) Dynamic pricing
b) Discounts to reduce fares (but this cannot be sustained in the long run).
c) Convenience of booking through the app.

I will write more about how a traditional taxi company can respond to the challenge from the new platforms.

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