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Chitchat ComfortDelgro Betrays Its Own Taxi Drivers by Signing New Partnership with Uber

gingerlyn

Alfrescian (Inf)
Asset
ComfortDelGro, Uber in talks for potential tie-up

SINGAPORE — ComfortDelGro, Singapore’s largest taxi operator, is in talks with ride-hailing giant Uber for a potential strategic alliance that could include teaming up on fleet management and booking software solutions.

In an announcement posted on the Singapore Exchange on Tuesday (Aug 22), ComfortDelGro, which has nearly 16,000 taxis under its Comfort and CityCab brands, said the discussions include making its fleet available on the Uber application.

It added that “there is no certainty or assurance” that the discussions with Uber would result in an agreement or an alliance materialising.

When contacted by TODAY, both companies declined to comment further. ComfortDelGro spokesperson Tammy Tan said: “If and when a decision is taken, an announcement will be made.”
Analysts called the move “strategic” — given Uber’s need to ramp up its vehicle pool and ComfortDelGro being “unaffiliated” to Uber’s main rival Grab — but felt both companies made strange bedfellows in some respects.

With Grab’s tie-up with the five operators appearing to give it a lead in the market, Uber is “just going to have (its) position eroded even further” without an alliance with ComfortDelGro, said Singapore University of Social Sciences (SUSS) transport economist Walter Theseira.

Scale is “everything” in the industry, with riders gravitating to platforms with more vehicles, he added.

Joining hands with the taxi operator would give Uber a sizeable amount of market, but Dr Theseira said it would be a “value-losing proposition” for ComfortDelGro if it is simply an avenue to rent out its vehicles.

Rather, through the alliance, ComfortDelGro needs to build expertise for its own app, and be able to deploy vehicles and match demand and supply.

The incentives on both sides were “clearly not aligned”, since private-hire firms such as Uber were “not interested in technology transfer”, he said.

SUSS urban transport expert Park Byung Joon said it remains to be seen if Uber will come up with a new platform under the possible alliance, just as Grab did with JustGrab.

Uber and ComfortDelGro could also combine both their apps, but this hinges on the agreement between the firms, he added.

Dr Park said Uber is replicating the strategy that Didi Chuxing — China’s top ride-hailing provider — adopted in emerging tops in the Chinese market.

Last year, Didi Chuxing acquired Uber’s China business after a bruising battle for riders where Uber reportedly bled US$2 billion (S$2.7 billion) over two years there.

Dr Park said Didi Chuxing had not only built a local driver network, but also teamed up with local taxi companies, allowing it to grow its pool much quicker and with significantly lower capital. ComfortDelGro has so far chosen a different path from five smaller taxi operators here.

Earlier this year, when the others sought approval from the authorities to put in place dynamic pricing, ComfortDelGro — which commands about 60 per cent of the country’s taxi fleet — opted to go it alone with a flat-fare option, which takes into account the distance to be travelled, and computes a fare based on existing surcharges.

In contrast, five taxi operators — SMRT Taxis, Prime Taxi, Premier Taxis, Trans-Cab and HDT Singapore Taxi — teamed up with Grab to roll out JustGrab, a fixed-fare service subject to dynamic pricing.

In May, ComfortDelGro announced it was partnering third-party booking app Ryde to allow commuters to book a Comfort or CityCab ride through the app.

In its Singapore Exchange announcement, ComfortDelGro advised shareholders to exercise caution when dealing in the company’s shares and securities as there is no assurance of any definitive agreement with Uber.

Its shares closed at S$2.17 on Tuesday, marginally lower than the S$2.19 on Monday.
 

Scrooball (clone)

Alfrescian
Loyal
Cab companies are worse than whores. They will sell their whole family for a dime.

But it's a perfect relationship between cab companies and cab drivers. Both are assholes. So it's a match made in heaven.
 

shiokalingam

Alfrescian
Loyal
%E5%9B%BE%E7%89%871.png


Grab’s success spells downhill for cabbies


August 20th, 2017 |



A year ago, Mr Anothny Tan, founder and CEO of Grab, while celebrating his investor and global partner @Didi Chuxing‘s successes in China, told his staff, among other things that:
“Didi’s success reinforces what I believed all along. That a team that lives and breathes the markets it operates in makes a difference. Because our users are also people whom we care about – our families, our neighbours, our friends. And not just some digits presented on a business dashboard at the other side of the world in a different time-zone.
We must listen and put ourselves in the shoes of our users and partners. And ultimately deliver the best passengers transport solution in this region has ever had.” (Link)
These are Wise Words from a young man
Anthony Tan, a Harvard Business School graduate, is brilliant and enterprising. He probably has the family gene as a grandson of Tan Chong Motor’s boss. While still a student at Harvard, he drew up a business plan for an Uber-like service that won his university school awards and backing from angel investors.
Anthony Tan knew from the beginning that he sells no physical product, only an idea and application that connects the user and the provider through internet technology. His role is only a middle man and the initial period was tough with many sceptics. He also knew that ultimately, the success of his enterprise depends solely on the user (commuter) and provider (driver) willingness to participate in his scheme.
Unlike many ivory tower bosses, Anthony has an intimate feel of the earth he farms. He knows exactly what he needs to do to get his business to a great start.
Firstly, he gets his managers to drinks coffee with taxi drivers at street stalls to hear their motivation and talks to commuters to understand their frustrations in hailing for taxis.
Then he gets his battalion of foot soldiers to recruit taxi drivers at food stalls, coffee shops, taxi stands, airport terminals and shopping malls through face-to-face sweet sales talks and enticements like free non-alcoholic drinks and easy-to-win gifts. An overwhelming majority of taxi drivers joined him instead of his rivals EasyTaxi, Hallo and Uber. He did the same with commuters.
After three years of hard and smart work, Grab expanded into many South East Asian countries and raised a few billions of investment funds from famous venture capital like Temasek Holdings.
Grab wisely invested in a new R&D facility in Singapore CBD that houses 200 engineers and data scientists. They also set up new software engineering offices in tech hub Seattle to attract talents and hired the best minds like Mr. Wei Zhu ex-Facebook creator. Inevitably, Grab developed exceedingly successful new application tools and features like JustGrab, GrabPay, GrabHitch, GrabNow and ventured into money spinner GrabCar.
Today, Grab success is beyond words and recognition.
What has Grab progress and all its new developments got to do with a taxi driver like me?
Yes, it does and a lot!.
I think Grab had lost its human touch in its management. They had forgotten Mr. Anothny Tan’s our users are also people whom we care about – our families, our neighbours, our friends. And not just some digits presented on a business dashboard on the other side of the world in a different time-zone.
I reckon as a young courting couple, Grab wooed me with loving attention and generous gifts. Once married, Grab sets new rules and regulations in the name of peace, harmony and progress to regulate our partnership, turning me into a powerless housewife dependent on her husband allowance for survival.


For example:
As a partner, I have no say at what price I get paid for the service I provide. I cannot reject too low price jobs that would make me lose money. If my rejection rate is above 85%, my account gets terminated without hesitation nor explantion.
Sad to say, many GrabTaxi drivers are doing more jobs through JustGrab and driving more hours for less money. Is this right?. If you put yourself in the driver’s shoe, you either choose a more reasonable price job to do or switch off the Grab application. But to turn off Grab application is suicidal as almost 80% of taxi rides are now through call bookings.
These days, street hailing jobs are very much harder to find. Hence, a mind-boggling majority of the 26,000 taxi drivers have no choice but to stick with GrabTaxi like an oppressed housewife with kids.
Grab is aware of the prevailing taxis drivers’ dilemma and the management staff is taking full advantage of it through its dealing with taxi drivers. I think Grab is contemplating to reduce or remove taxi drivers in their booming platform GrabTaxi and focus on GrabCAR. You’ll notice that all advertising money is spent on GrabCar, none for GrabTaxi.
Why?
Presently, there are more than 42,800 private-hire cars on Singapore roads, a figure which has overtaken the current taxi population of 26,000. With such massive numbers of Private Hire Car drivers in their fold and getting 20% commission from their ride-fare, any manager would surely want to push more jobs to these drivers than to GrabTaxi drivers whom they get only 10% cut.
Suppose a customer books a Standard Taxi ride via GradTaxi, Grab gets merely a fixed 50 cents administrative charge from the driver. If a GrabCar had done this job instead of a GradTaxi, Grab would earn at least $1.00, which is double and could be higher depending on the ride fare based on 20% commission. Simply said, Grab can make much more money from GrabCar than GrabTaxi. For this reason alone, Grab is tempted to remove the “Standard Taxi” option from their booking platform and GraxTaxi eventually.
In around June 2013, Grab claimed to be doing one booking every eight seconds or 10,000 a day. Today, it has gone up to 200,000 a day with rivals like Hailo and EasyTaxi out of the market.
Assuming that on an average Grab collects $5 a day from a Grabtaxi driver, based on 10% commission from 10,000 taxi drivers using JustGrab, Grab would profit $50,000/day. Multiply $50,000 x 30 days a month, its $1.5 million. If GrabTaxi drivers are removed from JustGrab and all these jobs go to GrabCar via Private Hire Car that has a 20% commission, Grab profit would double to $3 million a month.
Like all corporate business, maximizing profit is the greatest ultimate motivator.
Who cares about过河拆桥.
A Chinese idiom that says “To destroy the bridge after crossing the river. It means to abandon one’s benefactor upon achieving one’s goal.
Now, Grab does not fancy taxi drivers!. They are like COMFORT, getting rid of taxi drivers at the slightest mistake they made or a customer feedback or trivial complaint.
Grab is unfeeling like a robot and lets machines manage their relations and dealings with drivers. When a GrabTaxi driver rejects most jobs offered to him and his acceptance rating drops miserably low or when a customer triggers a feedback or complaint on their website, the driver’s account is instantly de-activated (suspended) without warning nor explanation. The GrabTaxi driver could be fetching a passenger when his/her account suddenly gets deactivated, resulting in driver unable to collect the fare and passenger unable to make a further booking.
Recently, I had the exact upsetting experience when a customer feedback to Grab that my taxi number plate was different from that shown in my booking application. My GrabTaxi account was suspended instantly without notice or warning.
On calling and speaking to an Indian national on the phone, I was told to submit an appeal through their website, with nobody knowing the reason for my suspension. How could I submit an appeal and defend myself if I’m oblivious of the charge for my suspension?. Meanwhile, Grab withheld my earning of about $500 indefinitely without regard to my financial needs and hardship.
After 4 days and upon knowing the reason for my suspension, I re-appealed and explained that I was driving SMRT’s TaxiShare that allows a driver to book and drive their taxis AS and WHEN we like. without a rental contract.
Under this flexible rental scheme, booking of taxis is on a first come, first serve basis and subject to taxi availability. I could be driving the same model of Toyota Pirus for four days with four different taxi number plate. I usually call my customer when my number plate is different from that shown on the booking application before I pick them up. Most of my customers appreciate my advance notice and my service rating is close to perfection at 4.87 out of a maximum of 5.
I wonder why a customer would be unhappy when the only change is the taxi number plate while the taxi driver, taxi model and taxi fare remain unchanged.
Nevertheless, Grab should not have suspended my account indiscriminately without first checking with me. Worst, they demanded that I drop by their office at Midview for investigation by their disciplinary officer, who refused to tell me the reason for the investigation and my suspension.
Honestly, I’m deeply distressed by the unprofessional work attitude of Grab ground staffs and is prepared to leave GrabTaxi even if proven that I’ve not committed any offence against my customer. Two weeks had passed with my earnings still withheld while I wait for Grab’s decision.
How could Mr. Anothny Tan allows such a harsh and robotic management style to prevails in his company when he is a strong advocate of the human touch. What happens to his values and vision of friendly tenet in his company?
Unsurprisingly, when strong competitors like Uber is also slowly abandoning taxi driver to focus on the money spinning private hire car business, Grab now completely dominates the “taxi” trade and is monopolistic. They are no different from COMFORT whose authoritarian style of management is well known among taxi drivers.
I think in the next decade or so, very few people will hail taxis from the streets or queue at taxi stands when online booking of private hire cars are relatively cheaper, easier and faster than standard taxis. If taxi uncles want to survive in this cut throat trade, they must jump ship from “taxi-uncle” to be GrabCar driver. It will mean the downhill slide of the traditional cabby vocation and eventual demise of taxis providers like COMFORT and the rest of the players.
I hope a brave investor will come to give Grab a wake-up call like the way Grab shook-up COMFORT and the local taxi industry three years ago.

James Lim

* The author is a 68-year-old Singaporean cabby. He became jobless at 55. Unable to find a suitable job and with a family to support, James became a taxi driver. He blogs to make his ‘dull job’ a bit more interesting at Diary of a Singaporean Cabby.
 
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