Updated: Aug 24, 2020
With the COVID-19 pandemic hurting top-line revenue, the implementation of cost control measures will take time to materialise. It is vital for businesses to continue supporting loyal clients and rely on them as companies take the path to recovery.
Even Comfort, the OG of Private Hire rides in Singapore is no exception, with subsidies amounting to approximately S$66.1million. The group sank into the red with S$6mil losses.(Source: Business Times)
When our app SPUR was first launched, our customers have consistently been choosing Comfort due to its affordability. You’ll notice in the below image that Comfort reigns as one of the cheapest options for a multitude of locations, a month before the release of their financial report.
After the release of Comfort’s financials we saw a stark 30% increase in prices of Comfort rides, much higher than our algorithms have predicted! Take a look at the images below.
To assess the impact on this in the transportation space. We made a comparison against other Private Hire providers in the space and here's what we discovered!
You'll notice above that both GoJek and Comfort have increased their prices while Grab kept theirs unchanged. We also documented an interesting shift in consumer activity, which shows some promise, albeit slow. Here's the lowdown:
20% of our customers are active on a daily basis and are taking at least 2 rides per day. Compared to our data 2 months ago, there was only 15% of active users taking 1.5 rides per day.
Turning our attention to the US, UBER and Lyft have both seen an increase in daily ridership which points to an improved fiscal outlook as consumers head out more. (Source: Reuters)
Good news? Are we out of the woods yet? Well, you be the judge of it.
So what have we gathered so far:
1) Comfort Taxi's in the red, and might be hiking prices to cover for that, while other private hire companies are holding firm. 2) We are noticing an increasing number of passengers and rides as we start to see some light at the end of the tunnel.
3) Private hire ride prices do fluctuate quite abit, heavily inflected by the pandemic and of course financial results.
As consumers it is important to stay abreast of such changes. The best way to do that is to download our app, and get real time data on price surges, as well as the cheapest rides available.
Download SPUR Here!