ComfortDelGro’s potential tie-up with Uber could spell disaster

It is worrying that 2,000-plus ComfortDelGro drivers may return their taxis to the operator in response to Grab’s rental discounts (Over 2,000 ComfortDelGro cabbies express interest in joining Grab; Sept 15).

Grab’s invitation to jump ship came after ComfortDelGro announced talks with Uber on a potential tie-up. While ComfortDelGro must compete with the newer players, a partnership with Uber spells disaster.

One similarity between ComfortDelGro and Uber is that a number of their taxis and cars are unrented. It has been reported that more than 2,000 taxis are unrented, while Uber is looking to release as many as 3,000 to 4,000 cars into the used market.

That total number of unhired taxis and cars surpasses Trans-Cab’s fleet.

ComfortDelGro’s partnerships with Karhoo and Ryde have been disastrous. Is a potential partnership with Uber another one in the making? While Uber is trying to sell off its cars to minimise losses, it seems that ComfortDelGro could inherit Uber’s problems.

ComfortDelGro may be better off on its own.