ComfortDelGro snaps up over 200 new taxis to get mileage out of cheap COEs

Its taxi fleet grew to almost 17,000 in H1.

ComfortDelGro is cashing in on the Certificate of Entitlement (COE) boom by aggressively expanding its taxi fleet.

According to a report by UOB Kay Hian, the group’s gross capital expenditure (CAPEX) jumped 74% year-on-year in the second quarter after purchasing over 200 new taxis.

“This increase in number of taxis purchased in comparison to the previous quarter was mainly due to cheaper Certificate of Entitlement (COE). We note that CAT B (Cars above 1600cc) COE prices declined 25.5% between its highs and lows during 2Q15 and CD has capitalised on the lower COE prices to fulfil a majority of its 2015 taxi replacement requirements,” said UOB Kay Hian.

ComfortDelGro’s fleet stood at 16,959 taxis as of the end of June. It is expected to replace 2000-3000 of its taxis annually and has an average taxi age profile of 4.7 years, shorter than a taxi’s useful life span is usually 7.5 years.