ADDED COMPETITION CAN RATHER TAXI OPERATORS ON THEIR TOES
The Singapore University of Social Sciences Associate Professor Walter Theseira noted that GrabCab has the opportunity to make use of the larger Grab program to encourage cab individuals to join the company, in contrast to a real car ship operator.
For instance, this might involve paying a lower rate for a car driver with the condition that they offer the driver” a particular level of service on the platform.”
Or, he added,” Grab could rent ( to drivers ) at the standard rate, but he could gradually rebate the rental, based on the volume of service you provided on the platform.”
A pure ( taxi ) fleet operator cannot use these strategies, he said, despite the fact that a combined fleet operator and platform can do so.
He added that the business will promote private use drivers on its platform to transfer to be taxi drivers on GrabCab, and that they will also be urged to do the same for car drivers from other companies, in order to increase the number of drivers on the platform.
The other vehicle users will start to see their hire usage decline as a result of this mixture, he said.
And if they can’t compete, they will likely have to let their vehicle ship numbers decline. ”
Terence Fan, a travel researcher, added that Grab also has the technical expertise to entice more customers to its goods.
While it is not always true that Grab will have to lower car prices to attract riders to its cars, it does, according to Asst Prof Fan, who is from the Singapore Management University, have a record of using promotional codes in diversity in its earlier days to attract new users.
He added that the company is already equipped with the necessary IT infrastructure to provide these customer incentives in a “relatively cost-effective way”.
According to the agreement, Assoc Prof. Ong, who is the NUS Department of Civil and Environmental Engineering’s deputy head of research and enterprise, will put pressure on the current taxi companies.
I think that the majority of taxi operators today’s drivers rely heavily on Grab’s app to get their customers, he said.
In this new setup, I believe we will need to look at how Grab will provide the salaries and benefits to the taxi drivers. ”
In response to a CNA question about whether the current Grab app’s standard taxi option will be discontinued, Grab stated that it was” committed to maintaining an open platform” that was accessible to all cab and private hire vehicle drivers.
Additionally, it will provide more details about GrabCab at a later time.
Given our extensive experience in fleet management, established infrastructure, and large vehicle fleet, ComfortDelGro, which operates both the Comfort and CityCab taxi fleets and responds to inquiries from CNA, said:” We are confident in our ability to serve our long-time drivers and customers effectively.
It added that it will continue to expand its ecosystem, driver benefits, and adapt its strategies as necessary to “ensure we remain a leading provider of taxi services in Singapore,” and that competition is” a natural part of the market dynamics.”
ComfortDelGro, Singapore’s largest taxi operator, has been providing safe and high-quality rides to Singaporeans for decades, building a strong and trustworthy taxi network, and continues to provide them with this commitment. ”