ComfortDelGro, Singapore's largest taxi operator, saw its stock price soar 4.55% in intraday trading, following the announcement of a new cancellation and waiting fee policy for its taxi services. The move is seen as a strategic step to enhance revenue and operational efficiency, leading to positive market sentiment.
The new policy, set to be implemented in phases starting July 31, introduces charges for ride cancellations and extended waiting times. Customers will be given four free cancellations per month, after which a $4 fee will apply. Additionally, a waiting fee of $3 will be charged for every five-minute block beyond the initial four minutes of free waiting time, up to a maximum of $9. The company emphasized that these changes aim to ensure "everyone's time is respected, and drivers are fairly rewarded when plans change at the last minute."
Investors appear optimistic about the potential impact of these new fees on ComfortDelGro's bottom line. The policy is expected to reduce cancellations and no-shows, improving the efficiency of the taxi fleet and potentially increasing driver satisfaction. Moreover, the additional revenue from these fees could contribute to the company's financial performance. The market's positive reaction suggests confidence in ComfortDelGro's strategy to adapt to changing urban mobility dynamics and enhance its competitiveness in the ride-hailing landscape.
ComfortDelGro soars 5.19% at 10:29 am, July 25th.