SINGAPORE (March 30): UOB Kay Hian is keeping its “hold” rating on land transport group ComfortDelGro (CDG) at a target price of $2.47, due to the lack of strong catalysts as the local taxi industry continues to undergo structural shifts with the recent rollout of a dynamic pricing fare structure.
To recap, the Land Transport Association (LTA) recently passed approval for taxi operators to introduce dynamic pricing for trips booked through mobile applications, which will serve as an additional option for commuters on top of metered-fare taxi bookings.
In conjunction with this development, Grab this week rolled out a new dynamic fare pricing service, JustGrab, where commuters can be picked up either by a GrabCar or a taxi.
