Rebound in supply shortage raises ride-hailing fares: analyst

This even as the pump prices are easing.

An analyst found that ride-hailing fares in Singapore are still high even as petrol prices have been easing, CGS-CIMB, said in its latest brokerage report.

This stemmed from the rebound in demand resulting in shortage of drivers and partners.

“The strong surge in demand outpaced supply growth. Despite easing pump prices over the past few months, fares remained at high levels in the third quarter of 2022,” said CGS-CIMB.

It also noticed that competition levels for point-to-point transport players, which eased beginning the second quarter of 2022, have remained manageable.

“We believe the current operating landscape will allow Grab to outperform management’s steady-state margin expectations for the mobility segment,” it said