SINGAPORE (Jan 29): ComfortDelGro Corp’s first official tie-up with Uber Technologies seems to have had a positive impact on its stock. Shares of the public transport operator have gone up 1% since the launch of UberFLASH on Jan 19. UberFLASH matches users of the Uber ride-hailing app with either an Uber vehicle or a ComfortDelGro taxi, whichever is closest. It is similar to the JustGrab offering of Uber’s largest local competitor Grab.

At a launch event on Jan 18, the two companies said UberFLASH fares are expected to be 5% to 10% lower than the default UberX fares. Uber will take a commission of just 10% on UberFLASH rides, lower than the 20% commission it charges UberX drivers.

Analysts are generally positive. Through UberFLASH, ComfortDelGro drivers will be able to accept fares with dynamic pricing — when demand is higher, fares will go up. Maybank Kim Eng Research analyst John Cheong, in a Jan 19 report, says the dynamic pricing function should increase the competitiveness of ComfortDelGro taxis.

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