It has been a rough few years for ComfortDelGro Corporation Limited (CDG). Its stock price fell to S$2.00 in December 2017, down from its peak of S$3.20 in June 2015. This coincided with rising competition from ride-hailing providers, Uber and Grab, which caused a 20% reduction in taxi fleets of both Comfort and CityCab from end-2015 to end-2017.
Source: Google Finance
In March 2018, Grab took over the entire Southeast Asian operations of Uber. There were mixed views on CDG with regards to Uber’s exit from the Singapore market. But it’s been evident that CDG has been a benefactor as it curbed the reduction of its taxi fleet and saw its stock price rebound from its low in 2017.
So is the worst over for CDG? Will it emerge a stronger entity in coming years? In this article, I’ll bring an update on CDG’s latest financial results, and its