ComfortDelGro Corporation Limited (CDG) is an integrated transport service provider with operations in Singapore, United Kingdom, Australia, China, Vietnam, and Malaysia. Its four key segments — public transport, taxi, automotive engineering and testing services — contributed over 97% of its 2018 revenue.
Most people know CDG as a taxi business that is being disrupted by ride-hailing platforms like Grab and Gojek. I had a similar impression until I did a deeper dive into the company’s business model. In reality, 70% of CDG revenues come from its majority stake in public transport operator SBS Transit, with a meagre 20% coming from its namesake taxi business. In fact, most of the acquisitions CDG made in 2018 were bus companies.
With this more accurate view of CDG’s business, I attended its 2019 AGM for insights on the company’s prospects. Here are eight things I learned from the 2019 ComfortDelGro AGM.