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Grab tries to woo ComfortDelGro cabbies with big rental discounts

SINGAPORE — Ride-hailing firm Grab has launched one of its most aggressive moves yet against its chief rivals, dangling heavily discounted rental rates — shaving off about half of what they are currently paying in some cases — to entice ComfortDelGro’s taxi drivers to jump ship.

SINGAPORE — Ride-hailing firm Grab has launched one of its most aggressive moves yet against its chief rivals, dangling heavily discounted rental rates — shaving off about half of what they are currently paying in some cases — to entice ComfortDelGro’s taxi drivers to jump ship.

The offer, which was broadcast to tens of thousands of ComfortDelGro drivers via text message on Sunday night — comes less than two weeks after Singapore’s largest traditional taxi operator announced talks with Uber on a potential tie-up.

If the partnership materialises, it will effectively carve up the private-hire car and taxi market into two, and sharply intensify competition for drivers, said analysts as they noted that the ComfortDelGro-Uber announcement on Aug 22 could have triggered Grab’s latest move. 

Grab is offering a daily discount of S$50 for six months on rents for existing ComfortDelGro drivers to cross over to any of Grab’s five partner taxi operators: Trans-Cab, Prime Taxi, SMRT Taxis, Premier and HDT Singapore Taxi.

This would shave about 40 per cent off the current rental rates they pay for their Hyundai i40 or Toyota Prius cabs, for instance. 

The discounts are higher if the cabbies take on a private-hire car through Grab’s rentals arm, GrabRentals. This will net them a S$1,688 monthly discount, which translates to about S$60 off their rental bill daily.

The rebates will be funded by Grab, TODAY understands. It was also understood that some ComfortDelGro drivers had approached Grab to enquire about joining JustGrab, a fixed-fare service subjected to dynamic pricing. JustGrab is presently confined to drivers from the other five taxi operators and Grab’s private-hire cars. 

The offer runs until next Friday with sign-ups at Grab’s driver centre in Sin Ming or at a roadshow in Prime’s office on Loyang Drive. With the necessary paperwork and documentation, cabbies can switch to another company within days, unless they have an existing contract — which typically runs for a year for new drivers — with their taxi companies. 

At the Loyang roadshow, about a fifth of the 50 or so ComfortDelGro drivers who turned up between 11am and 1.30pm on Monday (Sept 4) have indicated they would switch to driving with Prime Taxi or take up a private-hire car, said Ms Veronica Lim, deputy manager of Best Motor Leasing & Limousine Services, which is part of the Prime Group.

Grab, as well as its other partner operators did not reply to queries, or could not be reached for response. ComfortDelGro did not respond by press time, while Uber could not be reached for comment.    

When TODAY visited Grab’s driver centre at about 3pm, it was abuzz with activity, with at least 14 ComfortDelGro taxis — sporting the Comfort and CityCab brands — seen in the car park.

Asked about Grab’s offer, ComfortDelGro drivers whom TODAY spoke to gave a mixed response. 

A 54-year-old Comfort driver of 1.5 years who gave his name only as Sam said he will switch to a private-hire vehicle. He added that he was drawn by Grab’s heavy discounts, which could see him take home the same earnings by spending fewer hours on the road.

The number of passengers taking his cab has fallen, with 10 to 20 per cent fewer street hails, he said. Bookings for Grab’s private-hire car service GrabCar are “quite constant”, he noted. 

Mr Alex Low, 56, said he was “quite tempted” by the offer, and would plump for a private-hire vehicle if he takes it up. “This also gives us a car of our choice,” he said. He added that all eyes would be on how ComfortDelGro responds. “If they respond very slowly, they might lose a big portion of their drivers.” 

A driver, who wanted to be known only as Mr Tay, 53, said he has not made up his mind one way or the other. “Lower costs mean better earnings … Sometimes you need to work very hard to make the next dollar,” he added.

Still, some drivers such as CityCab’s Mr Long Sah Hai, 68, said they will stick with ComfortDelGro. “I’m satisfied; otherwise, I would not have driven (with CityCab) for 28 years. The rental … is okay. For now, I can still get by,” he said.

Another driver, who wanted to be known only as Mr Tan, said he was unsure if he would receive enough bookings should he make the switch, compared with what he gets now. Mr Tan, who is in his 40s, said he receives nearly 10 bookings during a typical 10-hour shift from the ComfortDelGro’s booking service.

“So even though if I can save money on rentals, I’m not confident I can earn as much as (what) I am earning now,” he said. 

The potential partnership between ComfortDelGro and Uber could include fleet management and booking software solutions, the taxi operator had said.

Nevertheless, it added that “there is no certainty or assurance” that the discussions would result in an agreement or an alliance materialising. ADDITIONAL REPORTING BY AMANDA LEE

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