Thursday, November 09, 2017

Costly for Grab and Comfort

This is a serious challenge for Comfort Taxis. They are losing drivers by the thousands. Many taxis are unrented.

A former Comfort taxi driver told me that he accepted the Grab offer and pays only $25 a day for the rental of a car to be used under the Grab platform. The rental is actually $85 a day but Grab subsidises $60 for a period of six months.

Previously, he had to pay $125 daily rental to Comfort Taxis.

He said that Grab made this offer because they are short of drivers who now have to get a vocational licence from LTA. It takes a few months for a new driver to get the licence. So Grab made an attractive offer to entice Comfort taxi drivers to move to their platform.

It must be very expensive for Grab to subsidise $60 a day for 6 months. The total cost is $10,000 per taxi driver. If 1,000 taxi drivers move over, the cost to Grab would be $10 million. Can they earn it back?

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