SINGAPORE - COMFORTDELGRO
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OPERATIONS REVIEW
SINGAPORE
PUBLIC TRANSPORT SERVICES (BUS AND RAIL), TAXI,
AUTOMOTIVE ENGINEERING SERVICES, INSPECTION & TESTING SERVICES,
DRIVING CENTRE, CAR RENTAL & LEASING, INSURANCE BROKING SERVICES,
OUTDOOR ADVERTISING
2,483.3
Public Transport Services
ComfortDelGro Corporation Limited is a leading
provider of public transport services (bus and rail)
in Singapore.
Revenue (S$’mil)
Scheduled Bus
2017 marked the first full year that SBS Transit
19,426
Ltd operated under the Bus Contracting Model
(BCM), where the provision of bus services and the
corresponding standards are all determined by the
Land Transport Authority (LTA). In all, SBS Transit
Total operating fleet size operates eight bus packages under the Negotiated
Contracts (NC).
In April 2017, SBS Transit was awarded the contract
12,623
for the Seletar Bus Package which comprises 26 bus
services that are operating from the Ang Mo Kio, Yio
Chu Kang and Yishun Bus Interchanges. This is the
third Package under the BCM. As part of the Package,
Total number of employees SBS Transit also took over the operations of the newly-
built Seletar Depot, which has been purpose built to
house close to 530 buses, in the third quarter of 2017.
The 96,000 square metre Depot boasts many features
including mobile phone charging stations, free Wi-Fi
access and a gym for the staff working there.
In February 2018, the LTA announced that SBS
Transit had won the Bukit Merah Bus Package, the first
Package under the NC that was put up for competitive
tendering in April 2017. This is the fourth Bus Package
under the BCM and it consists of 18 bus services,
including two cross-border services to Johor Bahru,
all of which are already operated by SBS Transit. This
Package will be implemented from the last quarter
of 2018.
During the year, SBS Transit took delivery of 146 new
buses. These included Germany’s MAN buses that were
added to its fleet for the very first time. It also received
its first three articulated buses, increasing its total fleet
size by 127 or 4.1% to 3,246 buses. Of these, 43% are
double decks.
Annual Report 2017 29
OPERATIONS REVIEW
SBS Transit also rolled out Marathon, Yellow Ribbon Run, Rail
the last nine of its bus services OCBC Cycle as well as the ASEAN For the year in review, demand for
as wheelchair accessible in School Games 2017. SBS Transit’s rail services continued
August 2017. With this, all of SBS Demand for its five premium to grow. Rail ridership increased
Transit’s 208 bus services are now bus services remained steady by 8.2% to more than 356 million
wheelchair friendly. throughout the year. It successfully passenger trips.
More details on our scheduled tendered for five new contracts, The increase came largely from
bus operations can be found in renewed a number of its existing the 42-kilometre long Downtown
SBS Transit’s 2017 Annual Report. ones and continued to provide Line (DTL), which became fully
school bus services to six operational on 21 October 2017 with
Unscheduled Bus local schools. the opening of the last 16 stations.
The Group’s wholly-owned Recently, ComfortDelGro Bus Compared to 2016, average daily
subsidiary, ComfortDelGro Bus was awarded a large Shell Eastern ridership on DTL grew by 26.7% to
Pte Ltd, has a fleet size of 347 Petroleum (Pte) Ltd contract 279,116. As at January 2018, average
buses. It operates employee to provide bus transportation daily weekday ridership on the DTL
and school bus charters as well services in Bukom for 10 years. has hit a new high of 470,000.
as overland bus services to To retain its bus drivers and Ridership also increased on
West Malaysia. It also operates attract new ones, ComfortDelGro the North East Line (NEL) and the
premium bus services, and shuttle Bus implemented various schemes, Sengkang-Punggol Light Rail Transit
bus services for industrial parks, including an employee referral (SPLRT) systems. Compared to 2016,
shopping malls, educational scheme. It also introduced ridership on the NEL increased by
institutions and condominiums. one-off bonuses, transport 1.7% to 210.2 million while ridership on
In 2017, ComfortDelGro Bus reimbursements and monthly the SPLRT systems grew by 5.6% to
provided bus services for events incentives to bolster remuneration 44.1 million in 2017.
such as the Republic of Singapore packages for bus drivers. To cater to the increase in
Air Force Open House, Chingay During the year, ComfortDelGro passenger demand, SBS Transit
Parade, Istana Garden Party, Bus disposed of 23 buses and added 146 more weekly trips to
National Day Rally, as well as bought 21 new ones. It plans to the NEL, and 252 daily trips to the
marathons and sports activities purchase 15 more in 2018 as part of SPLRT. It also extended its two-car
such as the Standard Chartered fleet expansion. train operations to weekends and
30 ComfortDelGro Corporation Limited
public holidays on both the Sengkang
West LRT Loop and the Punggol East
LRT Loop.
SBS Transit continued to improve
its rail reliability. Its Mean Kilometre
Between Failure (MKBF1), a reliability
measure used globally in the rail
industry, was 650,000 train-km for
DTL and 663,000 train-km for the
NEL, which compared favourably to
the nationwide network’s average of
390,000 train-km. For the SPLRT, SBS
Transit achieved 115,000 car-km while
the nationwide network’s average was
77,000 car-km.
More details on our rail
operations can be found in SBS
Transit’s 2017 Annual Report. popular among passengers. In just In May 2017, ComfortDelGro
10 days, the number of flat fare Taxi and RYDE signed a strategic
Taxi bookings crossed the 100,000- partnership to give RYDE app
ComfortDelGro Taxi remained mark, and in October 2017, it users access to its taxis, and its taxi
Singapore’s largest taxi operator crossed the 3 million-mark. To drivers access to 100,000 users.
with a combined fleet of about familiarise the public more about In June, ComfortDelGro
13,340 Comfort and CityCab taxis. its Flat Fare option, ComfortDelGro launched CabRewards+, which
Despite intense competition, Taxi not only rolled out 920 taxis rewards passengers with double
ComfortDelGro’s volume of booking with the “Flat Fare, No Surge the cabpoints when they continue
jobs remained strong during the Pricing” body wraps but it also their bus or train journeys with
year. Its ComfortDelGro App also launched a two-week “Flat Because ComfortDelGro taxis. These
experienced a 35% increase in its Who Likes Bumps?” contest on cabpoints can be used to redeem a
average daily new downloads as a Facebook. The contest encouraged variety of rewards including instant
result of targeted promotions and Facebook users to compare flat discounts for taxi booking jobs
new services that were launched. fare bookings with fixed fares, via the ComfortDelGro App, taxi
One of these new services was and the ones that showed the vouchers or free transfers to the
the Flat Fare option, which offers highest savings win. The contest airport via the CabRewards website.
passengers who book via the drew close to 190 entries and 47 As cashless payments
ComfortDelGro App, the certainty participants were rewarded. As a gained momentum in Singapore,
of the fare upfront, with no hidden result of marketing efforts, close to ComfortDelGro Taxi became the
add-ons and no surge pricing. 4.6 million Flat Fare bookings were first taxi company in Asia to extend
The Flat Fare option proved to be catered for the year. the Masterpass™ payment, a digital
1
MKBF refers to the mean km travelled between delays of more than five minutes.
Annual Report 2017 31
OPERATIONS REVIEW
payment service which requires Cabby Hardship Fund that was pumps on its premises. With more
neither cash nor physical card, to set up in December 2016 to its hybrids joining the fleet, more
pay for street hail rides on board its taxi drivers or their immediate pumps are expected throughout
taxis. With this extension, Masterpass family who require financial aid ComfortDelGro Engineering’s
transactions increased by another arising from death, total and kiosks. To improve efficiency,
30%. The Company also went on to permanent incapacity, as well as integrated e-payment systems were
add DBS Paylah!, Alipay and other serious chronic medical conditions. installed at each dispenser at the
QR Code payments such as OCBC To-date, about S$15,000 from two kiosks.
Pay Anyone and UOB Mighty. the Fund has been disbursed Two years after adopting the
In December 2017, to assist needy taxi drivers. In predictive maintenance approach,
ComfortDelGro Taxi created its addition to helping its taxi drivers, where parts are replaced before
own mobile wallet – CabPay – to ComfortDelGro Taxi also helped they reach the end of their
replace the physical Cabcharge with the educational fees of their lifespan – taxi breakdown rates
card by incorporating it as an children. In 2017, 1,268 Primary and have dropped by 13 percentage
electronic payment option in the Secondary level students received points. Maintenance downtime was
ComfortDelGro App for Cabcharge over S$172,300 worth of study also reduced by 12%. As a result
members. To-date, close to 1,000 achievement awards. of these efforts, 98% of hirers
CabPay mobile wallets have To cater to the demand from surveyed by the Company indicated
been created. a larger pool of Taxi Driver’s that they were satisfied with the
As a result of the Company’s Vocational Licence (TDVL) and service provided, up from 96% the
ability to provide customised taxi Private Hire Car Driver’s Vocational year before.
services, ComfortDelGro Taxi Licence (PDVL) applicants, the LTA In the area of bus maintenance,
managed to renew its contract appointed ComfortDelGro Taxi as ComfortDelGro Engineering
with VITAL to provide government the new TDVL and PDVL training allocated more space to cater to
agencies taxi services for another provider in November 2017. In just increased demand.
two years. It also secured new four months, over 9,700 applicants During the year, ComfortDelGro
contracts to provide taxi services have completed the TDVL and Engineering’s external car care
for staff of Aetos Security PDVL courses. business successfully secured
Management Pte Ltd and Resorts Following the announcement 31 new accounts. In May 2017, it
World Sentosa, Singapore. of the Group’s strategic agreement became Singapore’s exclusive
To bring about greater with Uber Technologies, Inc. distributor for Davanti Tyres from
convenience to its taxi drivers, (Uber) on 8 December 2017, the United Kingdom to augment
ComfortDelGro Taxi revamped ComfortDelGro Taxi and Uber the other tyre brands from Europe
the Cabby Portal to make it more launched UberFLASH on the Uber and Japan that were already
user-friendly. It also launched App on 19 January 2018. With sold at SPARK™ Car Care. It also
a new Cabby App on both the it, Uber App users can book a completed spraying painting and
iOS and Android systems so that ComfortDelGro taxi just like they livery work for 978 vehicles for the
cabbies on the move could check would an uberX vehicle. One month contracts it had with Borneo Motors
their statements and performance after the launch, average earnings (Singapore) Pte Ltd and Singapore
records as well as send feedback of ComfortDelGro taxi drivers who Power Ltd.
on their smartphones. The actively took on such jobs had
ComfortDelGro Bidding App, which increased by 19%. Inspection & Testing Services
comes with a demand heat map, 2017 was a challenging year for
was revamped to enable taxi drivers Automotive VICOM Ltd as increased global
to bid for current booking jobs even Engineering Services economic uncertainty, increased
when they are not in their taxis. Our automotive engineering competition and the cyclical nature
On 1 June 2017, the Company services subsidiary, ComfortDelGro of vehicle de-registrations – driven
extended the Drive and Save Engineering Pte Ltd, maintains the by the Certificate of Entitlement
Scheme (DAS) to its relief drivers. Group’s taxi fleet in Singapore. (COE) system – weighed
Relief drivers, who contributed The taxi maintenance business on performance.
S$20 to their Central Provident slowed during the year as a result of Vehicle de-registrations hit a
Fund (CPF) Medisave Accounts via the reduced fleet. record high of 120,376 during the
the CPF Board, were given a S$20 As ComfortDelGro Taxi rolled year, with more commercial vehicles
top-up from the Company. With this out more Toyota Prius petrol- and taxis taken off the roads. This,
extension, 43% of ComfortDelGro electric taxis on the roads, together with the enhancement of
hirers and relief drivers have ComfortDelGro Engineering the Early Turnover Scheme (ETS)
benefited from DAS. upgraded its Marymount kiosk to which was aimed at getting older,
The Company disbursed include the sale of petrol. This is more pollutive diesel commercial
financial assistance from the the first time the Group has petrol vehicles off the roads, resulted
32 ComfortDelGro Corporation Limited
in a 4% drop in total inspections To improve the experience of its DMCC, in Dubai, United Arab
to 468,807. corporate fleet customers, VICOM Emigrate (UAE) to perform glass
The Vehicle Assessment Centre launched the VICOM Solution for inspections there. The scope of
(VAC), which provides accident Inspection Requirements or V-SIR. work, which commenced in January
reporting services, filed 14,236 This new digital service sends 2017, involves the inspection of glass
cases last year, an increase of reminders to fleet owners via a self- panels for nickel sulphide inclusions
almost 6% over the previous year. managed portal so that they will not of the external glass facades of
Following two very high-profile miss any inspections with VICOM. Gold Tower and Silver Tower, office
explosions involving Compressed Complementing V-SIR was the buildings located in Cluster I of
Natural Gas (CNG) taxis, the LTA introduction of e-Pay, an easy-to- Jumeirah Lake Towers, Dubai.
decided to recall all CNG taxis and use payment solution that enables To broaden SETSCO’s reach,
public buses for an urgent two-day customers to pay for the vehicle two new services were launched in
inspection in May 2017. In Phase inspections with a few taps of the 2017 – consultation and certification
2 of the exercise, CNG passenger Automated Payment Machines. services. These services address
car owners were given two weeks Despite stiff competition, industry gaps where ad-hoc
to have their vehicles inspected in VICOM’s wholly-owned subsidiary, advisory and consultative services
June 2017. In all, VICOM inspected Setsco Services Pte Ltd (SETSCO) are frequently required. With the
over 450 taxis, 1,140 CNG secured several notable projects successful attainment of ISO/IEC
passenger cars and 12 public buses. both locally and internationally 17021-1:2015, SETSCO is now able to
VICOM also undertook the task of during the year, thanks to its strong offer a wide range of certification
installing tamper-evident decals on track record. services to companies which seek
private hire vehicles. It undertook a one-year term compliances to the requirements
The co-brand partnership contract for the testing of sand of different management systems
with Diners Club Singapore grew and granite from the Building such as ISO 9001, ISO 14001 and
from strength to strength and and Construction Authority and ISO 18001.
culminated in the official launch completed a shutdown project More details can be found in
of the Diners VICOM co-brand at one of the chemical plants in VICOM’s 2017 Annual Report.
card, “V”. Further cementing V Jurong Island. It had a remote test
as Singapore’s motoring card laboratory set up at the Changi Driving Centre
was VICOM’s partnership with Terminal 5 site to support earthwork ComfortDelGro Driving Centre Pte
popular auto-related brands such and pavement testing as well Ltd, which provides learner driver
as Bridgestone Tyre Singapore as soil, concrete, chemical and training services in Singapore,
and CARS International. The Esso environmental testing for its clients achieved a 3% increase in enrolment
Fuel Card, coupled with V, was involved in the construction of a in 2017.
popular among cardholders as they three-runway system. During the year, new initiatives
get to enjoy fuel discounts of up SETSCO also set up a wholly- were implemented to enhance
to 21.27%. owned subsidiary, SETS Services learners’ experience. ComfortDelGro
Annual Report 2017 33
OPERATIONS REVIEW
Driving Centre installed self-service plans to integrate the e-Qualified a portion of the monthly revenue for
kiosks within its premises to enable Driving Licence into the Traffic the Club members’ usage.
learners to top up their store-value Police’s elite system in 2018. To increase productivity and
accounts to book for lessons. improve customer service, the
ComfortDelGro Driving Centre Car Rental & Leasing Company plans to put in place
also introduced the Learner Driver Our car rental & leasing subsidiary, an online scheduler system by
Competency Screening (LDCS) ComfortDelGro Rent-A-Car Pte early 2018 that will better facilitate
in September 2017. The LDCS is a Ltd operates a fleet of 1,071 cars, of appointment bookings and improve
practical lesson conducted using which 150 were brand new. after-sales services. The system
the Driver Assessment Tool, which With many corporate clients is also able to generate back-end
comprises an in-vehicle logging still maintaining a tight budget, productivity and trends reports for a
system, cameras and advanced ComfortDelGro Rent-A-Car more targeted marketing approach.
sensors. The system records a focussed on promoting longer term
learner’s performance and videos contracts at attractive rental rates Insurance Broking Services
are then reviewed to provide for existing used vehicles. It also ComfortDelGro Insurance Brokers
constructive feedback to learners. continued to push out differentiated Pte Ltd, our in-house insurance
From 2019, all motorcar and customer retention programmes on broking arm, continued to
motorcycle learners will have to a quarterly basis. perform well in 2017. In Singapore,
undergo simulator training. In As part of advertising efforts, ComfortDelGro Insurance Brokers
preparation of this, ComfortDelGro ComfortDelGro Rent-A-Car is focussed on providing general
Driving Centre commenced organised nine road shows that were insurance broking services, risk
renovation works on its existing targeted at individual and corporate management and analytics,
office space in November 2017 clients alike. employee benefits consultation, cost
to accommodate the new In October 2017, ComfortDelGro effective medical insurance as well
Simulator Centre. Rent-A-Car entered into a three- as holistic wellness solutions to the
ComfortDelGro Driving Centre month agreement with Car Club, Group and its external clients.
also worked with the Traffic Police Singapore’s leading car-sharing During the year, ComfortDelGro
on a number of collaborations operator, for 10 rental cars on Insurance Brokers entered into
including the integration of the a consignment basis. In return, a strategic alliance with a cyber
e-Provisional Driving Licence. It ComfortDelGro Rent-A-Car received security provider in Singapore
34 ComfortDelGro Corporation Limited
to offer cyber security related Apart from BIG Top buses, though they are not physically
consultancy, products and services another client, ExxonMobil on display.
in terms of risk assessment, Singapore, also tapped on Moove To commemorate NS50,
protection and incident recovery. Media’s Ignite Bus format for Moove Media teamed up with
This strategic alliance provides its the launch of its newly improved the Ministry of Defence’s creative
enterprise customers with “cyber fuel – Synergy Supreme+. These agency, Formul8, to roll out 50
health check-ups”, which identifies buses have sides that are lit up by army-themed buses. Of these,
existing or potential weaknesses in electroluminescent panels to create half featured a 1.8-metre tall
their IT systems, and enables them more visibility at night. “mobilisation man” on the rooftops.
to put effective risk mitigation and With consumers spending more Buses were also wrapped in
insurance solutions in place. time on their mobile devices, Wi-Fi pixelised patterns similar to that
ComfortDelGro Insurance Bus format was the third concept of a standard Singapore Armed
Brokers also worked closely with that Moove Media introduced during Forces uniform.
Group Human Resource Department the year. The British Broadcasting Moove Media also collaborated
and external insurers to provide free Corporation was the first client to with the Health Promotion Board
basic health screening to staff. Staff roll out two of such Wi-Fi buses, to issue 12,000 unique taxi
diagnosed with high blood pressure, with CIMB Bank Singapore following promotion codes to individuals
high cholesterol and diabetes were suit in a campaign utilising 10 who completed the Diabetes Risk
then encouraged to go through a bus services. Assessment, which identified
free Chronic Disease Management Moove Media countered the potential risks of developing
Programme to help them work drop in the number of taxis available diabetes. Response was so
on how they could improve their for advertisements by weaving overwhelming that promotion
medical conditions and lead in promotion codes, and offering codes were fully redeemed within
healthier lives. special two- and three-dimensional two weeks.
Elsewhere, ComfortDelGro (3D) taxi tops as well as taxi Moove Media continued to
Insurance Brokers continued to bumpers to their clients. partner and work closely with
aid the Group’s Business Units in Always at the forefront of the Authorities to roll out festive-
Singapore and overseas in achieving technology, Moove Media introduced themed trains and buses, including
cost reductions and implementing technological innovations like the the Chinese New Year- and
effective claims processes and risk use of holographic 3D displays in Christmas-themed trains on the
management strategies. its advertisements. This means NEL, Deepavali-themed trains on
In the first quarter of 2018, that advertisements appear to be the NEL as well as DTL. These trains
ComfortDelGro acquired suspended in mid-air and consumers continued to be well-received
the remaining 51% stake in are able to view products even by commuters.
ComfortDelGro Insurance Brokers,
making it a wholly-owned subsidiary.
Outdoor Advertising
In 2017, there was an increase in bus
and rail assets for Moove Media Pte
Ltd’s advertising portfolio thanks
to SBS Transit’s successful tender
for the Seletar Bus Package and the
opening of DTL3 respectively.
With the implementation of
the two-third rule for bus wraps in
February 2017, Moove Media came
up with an out-of-the-box concept.
Called the BIG Top concept, it is a
U-shaped aluminium panel that is
seamlessly welded and installed
on top of a single deck bus. This
concept provides additional
advertising space on the sides and
rear of buses. Moove Media had
the BIG Top concept successfully
patented. During the year, a total
of 40 advertising campaigns were
executed on 252 BIG Top buses.
Annual Report 2017 35
OPERATIONS REVIEW
UNITED
KINGDOM
Aberdeen, Cardiff, Glasgow, Liverpool,
London, Newport, Swansea
BUS, COACH, TAXI RADIO CIRCUIT, PRIVATE CAR HIRE
855.2
London, England
Bus
In the United Kingdom (UK), our wholly-owned
subsidiary, Metroline Limited, maintained its position
Revenue (S$’mil) as the second largest bus operator in London with
a fleet of over 1,900 buses, plying routes mainly
in North, West and Central London. It runs 19% of
7,969
London’s scheduled bus mileage.
Following the successful trial of a fully electric
double deck bus at Willesden Garage in 2016,
Metroline won the contract to operate the existing
Total operating fleet size Route 46 using 23 fully electric single deck
buses. In preparation, Metroline has increased its
electrical power and is installing charging units in
5,762
Holloway Garage.
Metroline is a frontrunner in the adoption of Green
vehicle technology, with more than 20% of its fleet
made up of double deck hybrid buses, including the
Total number of employees 165 hybrid double deck vehicles it had taken delivery
in 2017. At the request of Transport for London, it
started working on hydrogen-powered buses.
The Metroline Centre for Skills and Development
was also launched during the year to provide a more
structured training environment for staff. Plans are in
the pipeline to conduct development courses from
Management to apprentice levels as well as office and
administration-related training.
Metroline’s standing as a superior bus operator
was given recognition in 2017 when Willesden Garage
was shortlisted as a finalist in the “Best London Bus
Garage” category at the UK Bus Awards.
Coach
Based in London, Westbus Coach Services Limited
provides executive coach services across the UK
36 ComfortDelGro Corporation Limited
and mainland Europe, catering involves transporting patients leather seats and on-board
to a wide spectrum of school, from Liverpool and Manchester refreshment. One of these services
commuter, tourist and corporate airports to Merseyside hospitals was the Edinburgh-Inverness
coach passengers. for treatment with some travel to connection, which is served by
To mitigate the drop in tourist and from hospitals further afield. two Scania Irizar i6 luxury coaches
arrivals from China and Japan, that come with USB ports, leather
Westbus diversified its passenger Glasgow, Scotland seats and on-board toilets. It also
base to include tours from Europe, Coach equipped all its coaches on major
corporate and private hire, cruise The Group’s partnership with routes with Wi-Fi.
ship passenger transfers, school Stagecoach, Scottish Citylink
and student travel, as well as Coaches Limited, is the leading Aberdeen, Scotland
home-to-school services. provider of express coach Taxi Radio Circuit
services with 94 coaches in Computer Cab (Aberdeen) Limited
Taxi Radio Circuit Scotland under the ‘Scottish has the largest fleet of taxis
ComfortDelGro’s wholly-owned Citylink’ and ‘megabus.com’ in Aberdeen.
subsidiary, Computer Cab plc brands. It also operates a network It continued to perform well
(operating under the ‘ComCab’ of cross-border services between despite the slowdown in demand
brand), is London’s largest black Scotland and major cities from its major clients in the oil
taxi operator with a fleet of in England. & gas sector. The Company
1,839 taxis. During the year, Scottish worked closely with its drivers and
Taxi and private hire operations Citylink became the first national expanded its passenger base to
in London continued to come operator to roll out contactless those not directly susceptible to
under pressure due to intense payments across its entire fleet the volatility in the market. The
competition and continued in December 2017. The new Company recently won a contract
uncertainty post-Brexit with many technology, which was launched from Aberdeen Performing Arts
corporate customers keeping a as part of a £12 million (S$21.3 that gives its taxis access to the
tight rein on discretionary spend. million) Stagecoach programme, three main entertainment venues
Despite that, CityFleet enables passengers across the in the City.
Networks kept up with its UK to pay for their travel using
technological investments in 2017 a contactless credit or debit Cardiff, South Wales
to maintain a competitive edge. card, as well as Apple Pay and Bus and Coach
It enhanced its booking systems Android Pay. On 7 February 2018, the Group
and apps with many new market Scottish Citylink continued to expanded its bus and coach
leading features. The international face increased fare competition operations in the UK through the
booking service offering was also from low-cost domestic airlines acquisition of New Adventure
enhanced by allowing bookings to and heavy discounting from Travel Limited (NAT Group), one
be done via a responsive website other coach and rail operators. of the leading bus and coach
and mobile apps. To maintain its competitive operators in South Wales. This
edge, Scottish Citylink removed S$25.0 million (£13.4 million)
Private Car Hire unproductive lines and improved acquisition is the Group’s first
Flightlink International its cross-borders connections. expansion of its bus operations
Limited provides hassle-free For example, it withdrew the outside of London.
executive chauffeured car Glasgow-Liverpool-Birmingham- NAT Group operates a fleet
services for private hire and London service in July 2017 and of 117 buses and coaches across
airport transfers under the introduced a slightly faster service four depots in Cardiff, Swansea,
ComfortExecutive brand. on the Edinburgh-Glasgow route Newport and Pontypridd. Based
in the same month. near the City Centre of Cardiff,
Liverpool, England To provide passengers with it operates commercial and
Taxi Radio Circuit the convenience of having an contracted scheduled bus services.
Computer Cab (Liverpool) Limited all-day connection from Glasgow It also has a fleet of coaches, which
is the City’s largest taxi circuit City Centre to Edinburgh Airport, operates on local contracts, as
operator with a fleet of 359 it extended the operating hours well as UK and European private
black cabs, catering to both the on the hugely popular Edinburgh- hire and holiday work. It also offers
corporate and individual clientele. Glasgow service. It now operates transport services to professional
It had a successful year with the round-the-clock. sports teams including Swansea
retention of key accounts and To further enhance its services, City Football Club, Newport
the award of a new Isle of Man it introduced more “Gold” services County Team and Supporters and
contract. The three-year contract – coaches that come with luxury Cardiff City Supporters.
Annual Report 2017 37
OPERATIONS REVIEW
AUSTRALIA
Ballarat, Blue Mountains, Canberra, Geelong, Lake Macquarie, Maitland,
Melbourne, Newcastle, Parramatta, Perth, Queanbeyan, Sydney
BUS, TAXI, OUTDOOR ADVERTISING
Sydney, New South Wales
423.6 Bus
We operate bus services in Sydney, New South Wales
(NSW) through ComfortDelGro Corporation Australia
Pty Ltd (CDC), which became a wholly-owned
Revenue (S$’mil) subsidiary in February 2017.
Following in the footsteps of SBS Transit, CDC
implemented the Mobileye system on all its buses in
3,350 Region 4 in July 2017. As a result, both the accident rate
and corresponding repair costs dropped.
Other key performance indicators in Region 4
such as On Time Running (OTR) also showed marked
Total operating fleet size improvements as CDC put in processes to improve its
drivers’ performance and added resources to increase
the turnaround time of trips.
2,376 During the year, CDC, in partnership with Transdev
Australasia Pty Ltd (Transdev), successfully secured the
Epping to Chatswood rail replacement project, which
will run about seven months, commencing in the last
Total number of employees quarter of 2018.
CDC also renewed a few existing contracts, including
an additional three-year charter with Singtel Optus Pty
Limited, as well as the nightride contract. The latter,
which runs from 1 March 2018, will add three additional
routes to the current Hillsbus contract. Both contracts
are expected to boost revenue.
CDC also revamped its website during the year and
started a Facebook account in March 2017 to reach out
to more customers.
In independent surveys conducted by Transport for
New South Wales (TfNSW), all of CDC’s NSW contracts
maintained their high ratings in 2017. Customer
satisfaction for Hillbus also continued to exceed the
regulatory benchmark of 85%.
As part of a number of NSW Government efforts
aimed at revolutionising public transport, CDC
partnered Cabcharge Pty Ltd for an on-demand bus
trial in February 2018. The six-month trial involves four
38 ComfortDelGro Corporation Limited11-seater wheelchair accessible Management System was also passengers annually. Qcity Transit
minibuses, and state-of the- developed to better track booking provides route and school bus
art-technology which is being allocations and invoices. services to the community of
developed by CDC. The buses In October 2017, Moove Media Queanbeyan in NSW. Queanbeyan
serve the Carlingford, North Rocks Australia won the exclusive is located on the Eastern Border
and Epping areas during the advertising rights to offer taxi of the Australian Capital Territory,
morning and evening peak hours. advertising packages with Swan Taxis and is 15km from the centre of
As part of the trial, a new website Limited in Perth, Western Australia. Canberra, Australia’s capital.
and app were also launched, Transborder Express delivers route
enabling customers to book trips Blue Mountains and Hunter Valley, and school bus services to the
at a flat fare, with payment being New South Wales community of Yass, with direct
made via the secured app. Bus services operating between Yass
During the year, CDC successfully and Canberra.
Outdoor Advertising re-negotiated and secured contracts Both Qcity and Transborder
Demand for Moove Media in the Blue Mountains and the Hunter Express operate services under
Australia peaked in the third Valley. The extended contracts will the Rural and Regional Contracts
quarter of 2017 with several of commence in 2018 and expire in with the NSW Government. These
its bus advertising formats sold 2020, with an option for a one-year contracts were renewed in 2017
out for consecutive months. extension to 2021. and will be due for subsequent
Additional bus advertising In terms of customer satisfaction renewal in 2024.
sales opportunities were also levels, the Hunter Valley and Blue
created through the Company’s Mountains Transit bus services did Melbourne, Victoria
collaboration with Transdev in well, exceeding the benchmark Bus
Sydney and the TSA Regions of 85% in independent customer CDC operates essential bus
for 2017. satisfaction surveys conducted by services across the Western and
To improve productivity, a new the TfNSW. Eastern suburbs of Melbourne, as
Customer Relations Management well as Ballarat and Geelong.
software solution was introduced Queanbeyan, New South Wales On 29 January 2017, CDC
in 2017 to help the Company Bus successfully implemented a
manage all its sales and marketing The Qcity and Transborder fleet transformational network change in
proposals. A new Booking of 116 buses carries over 1.5 million Ballarat – the first in 10 years.
Annual Report 2017 39OPERATIONS REVIEW
As a result, 19 routes were simplified Werribee River Parklands in the enhancements such as alternative
to 15 – with an increase in coverage West of Melbourne. Sustainability payment methods, were made to
no less! The new services now efforts were also ramped up the App. Its last promotion run
operate in areas which were through an initiative to introduce for the Melbourne Cup saw a high
previously unserved by public hybrid buses in Melbourne. CDC has redemption rate of 98%.
transport. Frequency to selected proposed to replace its diesel buses To further improve its service
routes was also further improved, with the Volvo Euro 6 hybrid buses. levels, Swan Taxis’ call centre
with services operating every 30 If this proposal is accepted by the also started offering callers
minutes. As such, a 50% increase in Government, our Melbourne fleet an amalgamated booking and
the number of drivers was needed will boast the largest number of payment solution enabling
to handle the growth in demand. hybrid buses in Australia. passengers to book and pay for
The transformation has translated On 11 December 2017, CDC their rides in advance. Callers are
to nearly 20% growth in the number moved its office in Altona to quoted a flat fare for the bookings
of contract buses, and over 30% Wyndham Depot in Truganina, and are able to pay it immediately
increase in revenue growth. West of Melbourne. This mega with their credit cards over the
CDC currently operates five depot, which was completed in the phone. Passengers have given
Metropolitan contracts that third quarter of 2017, holds up to positive feedback about this
represent around 65% of its total 230 buses. It replaces the existing service as it had given them added
revenue. The contracts are due to facilities at Altona and Hoppers security where fares and payments
expire on 30 June 2018. At the time Crossing, and went fully operational are concerned.
of this printing, CDC is negotiating a on 8 January 2018. A grand The Colour Taxis Scheme that
renewal of these contracts. opening ceremony of the Depot will Swan Taxis rolled out in November
As a leading company in the take place by the end of the first 2016 continued to be well-received,
industry, CDC continued to innovate quarter of 2018. particularly its “white” taxis that
by coming up with several industry are driven by taxi drivers who
firsts. One of them was Mobileye Perth, Western Australia are 55 years old and above, and
– the same safety system that was Taxi “pink” taxis that are driven by
implemented in CDC buses in NSW In October 2017, we announced that female taxi drivers for female
– was also implemented in CDC Swan Taxis Pty Ltd had expanded passengers. Equally popular are
buses in Victoria. its fleet by acquiring Metro WA the “blue” taxis, which are driven by
The other was the fleet-wide Taxi Management Pty Ltd (Metro taxi drivers who are able to assist
installation of an automated voice Taxi), the largest taxi management children unaccompanied by adults.
announcement system. The voice company in Perth. It marked Swan These have also been adopted
announcement, which is triggered Taxis’ entry into fleet management by a number of corporate clients
by the opening of the front door and ownership and is expected to involved in aged care.
of the bus, reminds passengers provide the Company with greater During the year, Swan Taxis,
to pay their bus fares. The system control over its driving fleet as well which operates “Easy Access”, a
has not only reduced the incidence as additional revenue streams. service dedicated to passengers
of fare evasion but also improved Amidst a highly competitive who are wheelchair users, provided
customer service. In all, the two environment, Swan Taxis carried lifting fee subsidies to cabbies,
systems represented a capital out different initiatives throughout amounting to an estimated
expenditure of nearly A$1 million the year. A$432,000 (S$450,576). It also
(S$1.06 million). For example, it offered reduced rank fees and eliminated
CDC operates Route 601, the the Flat Fare option via the equipment hire for those affiliated
busiest bus route in Victoria that ComfortDelGro Swan Taxis App with the Company for more than
connects Huntingdale Train Station in July 2017. The Flat Fare option five years.
and Monash University. Given the offers passengers the certainty of For the year ahead, Swan Taxis
strong demand for this popular the fare upfront, with no hidden is collaborating with Moove Media
route, CDC boosted the capacity add-ons and no sky-high surge Australia to ramp up outdoor
of the route by 11% through the prices. Customer reception has advertising as another revenue
replacement of the front seats since exceeded expectations – flat stream for both the Company and
of the Route 601 fleet with more fare bookings currently accounts its taxi vehicle owners. As part of
handrails and hand holds. for approximately 54% of all the initiative, taxi vehicle owners
As a community-focussed bus App bookings. receive a share of advertising
operator, CDC upped its Green Promotion codes, which were revenue as a reward for displaying
quotient in 2017 through a bus-led initially slow to gain traction, advertising messages on
sustainability project to green the became more popular after further their vehicles.
40 ComfortDelGro Corporation LimitedCHINA
Beijing, Chengdu, Chongqing, Guangzhou, Jilin City, Nanjing,
Nanning, Shanghai, Shenyang, Suzhou, Tianjin
BUS STATION, TAXI, CAR RENTAL & LEASING,
VEHICLE INSPECTION & TESTING SERVICES, DRIVING CENTRE
NORTH CHINA
179.2 Beijing
Taxi
With a fleet of 5,501 taxis, translating into a market share of
Revenue (S$’mil) 8.3%, Beijing Jin Jian Taxi Services Co., Ltd, is the Capital
City’s third largest taxi operator.
To get operators to keep investing in newer and
11,230 environmentally friendly vehicles, the Government has
introduced subsidies for all taxis that are replaced before
they reach seven years of age. Taking advantage of this
ruling, Beijing Jin Jian replaced 842 such taxis during the
Total operating fleet size year with new Hyundai Elantras. It also started trialling new
Chang An Yi Dong taxis.
To attract more taxi drivers to join its ranks, the
958 Company continued to reach out to retirees and
retrenched workers.
In May 2017, the new rules aimed at regulating third-
party booking apps came into effect. These new rules,
Total number of employees imposed by the Beijing Municipal Government, required
ride-sharing companies to hire only drivers who hold
Beijing residency permits or “Hukou”. App companies
must also sign labour contracts with the drivers and
provide them with motor accident insurance. Stringent
restrictions have also been placed on drivers of such apps
including the fact that they must have at least three years
worth of driving experience with no prior criminal records.
All vehicles must only be registered with Beijing car
licence plates.
With these regulations in place, the Company is hopeful
that the taxi industry will stabilise in 2018.
Vehicle Testing Services
Beijing Tian Long Da Tian Vehicle Inspection Co., Ltd, our
80%-owned joint venture, provides vehicle safety and
emission testing services in the Capital City.
Annual Report 2017 41OPERATIONS REVIEW
The Company, which started except it is in Chinese, and enables further tightened to better manage
to assist vehicle owners in the passengers to tip the cabbies. It also the accident rate. As a result of
registration of new vehicles, saw offers cashless payment options their efforts, a total of 420 taxi
volume increase during the year. To including WeChat and Alipay. drivers from both taxi companies
make it more convenient for these Jilin ComfortDelGro taxi also were commended by the Shenyang
car owners, Beijing Tian Long Da adapted the Driver App for its taxi Transportation Bureau.
Tian provided a new vehicle tax drivers to enable them to bid for With the introduction of new
collection service and set up a sales booking jobs via the App, and to policies to govern third-party apps
point for car insurance agents. use it to notify passengers of their by the Municipal Government,
Always leveraging on technology, arrivals. Similarly, this App allows the Company was able to retain
its inspectors started to use tablets taxi drivers to arrange for cashless more taxi drivers. It also rolled out
during inspection checks to enable payments via WeChat or Alipay different rental packages to cater to
them to record their findings that passengers have to activate different taxi drivers.
electronically. The Company also and authorise. In the first quarter of 2018, the
set up corporate accounts for Similar to what Beijing had done, Group acquired 217 taxi licences and
customers on WeChat to facilitate the Jilin Municipal Government plans vehicles from Shenyang Tian Wen
cashless payments, as well as to issue detailed implementation Taxi Co., Ltd, bringing its total fleet in
reservation of inspection slots. These policies aimed at regulating third Shenyang to 1,508.
WeChat accounts also make it easy party app bookings. Once these
for vehicle owners to fill in their regulations are in place, the Company WEST CHINA
vehicle information. is hopeful that the taxi industry will
stabilise in 2018. Chengdu, Sichuan Province
Jilin City, Jilin Province Taxi
Taxi Shenyang, Liaoning Province Our wholly-owned subsidiary,
Our 97%-owned subsidiary, Jilin Taxi Chengdu ComfortDelGro Taxi Co.,
ComfortDelGro Taxi Co., Ltd, is the Our two taxi companies – Shenyang Ltd faced a challenging year in 2017
City’s largest taxi operator with a ComfortDelGro Taxi Co., Ltd and due to the proliferation of third-party
14.2% share of the market. In 2017, its CityCab (Shenyang) Co., Ltd – apps. With the Government planning
fleet of 729 taxis was fully hired out. operate a total fleet of 1,291 taxis. to implement a new National Order
The Company replaced 21 taxis Demand for services by both to regulate third-party apps within
and renewed 21 licences during companies remained strong with their the next two years, the Company
the year. fleets of taxis fully hired out in 2017. hopes that it will create a level
It launched the Jilin Training on safety and service was playing field for its taxi drivers.
ComfortDelGro Taxi Booking App provided to taxi drivers to improve During the year, taxi licence
on both iOS and Android systems their service levels. Management also fees that were waived by the
in the last quarter of 2017. The underwent courses to keep abreast Government were passed on to
interface is almost the same as the of the latest developments in the the taxi drivers in the form of cash
ComfortDelGro App in Singapore industry. Road safety processes were rebates in 2017.
42 ComfortDelGro Corporation LimitedCar Rental & Leasing Qi Ai Taxi Services selected the In 2017, the Station actively rented
ComfortDelGro Rent-A-Car Volkswagen Santana Lavida taxi out idle space on its premises. Massage
(Chengdu) Co., Ltd, the Group’s model for its taxi replacement chairs and vending machines that
wholly-owned motor vehicle rental programme, with the Volkswagen sell drinks and telecommunication
and leasing subsidiary continued Touran taxi as the alternative. A total products have now become an
to explore both offline and online of 50 five-year-old taxis are also due additional stream of revenue.
marketing strategies to improve for replacement in 2018. Tapping onto technology, the
rental demand. Despite the release of the much- Station introduced electronic invoices
awaited policy concerning third-party which not only improved productivity,
Driving Centre apps in October 2016, the shortage but also shortened the waiting time
It was a challenging year for our of taxi drivers remained a challenge in at the Station since passengers could
95%-owned driving subsidiary, 2017. To ensure its taxis were rented print their invoices in advance. Ten self-
Chengdu ComfortDelGro Qing out, Shanghai City Qi Ai Taxi Services service gates for checking tickets were
Yang Driving School Co., Ltd as continued to engage ‘maiduan’ also added to speed up the process.
competition remained stiff. drivers. To-date, 30 of them are On top of the existing automated cash
To further enhance its value renting its taxis. ticketing machines, another 14 more
proposition, the Company introduced were added, bringing the total to 29.
mock test training to prepare Suzhou, Jiangsu Province It also added seven and 15 ticketing
students ahead of actual tests. To Taxi machines that accept Alipay and
cater to students who have to take Our 70%-owned subsidiary, Suzhou WeChat payments respectively to
mock tests, a new test centre was Comfort Taxi Co., Ltd started the year improve efficiency.
opened at its premises. The School with some unhired taxis in its fleet of New bus services were added to
also introduced incentive schemes 165 vehicles but managed to renew theme parks and places of interest in
for private instructors to encourage the rental agreement of all of them 2017 to expand its product range.
them to sign their students up for this before the year ended. Unfortunately, To-date, the Station has developed 15
mock test. To cater to the increase, the Suzhou Authorities stopped such services, yielding 31,000 tickets.
the School is looking to reactivate its releasing new taxi licences during the Two automated bus despatch
old test site to increase its capacity to year due to stiff competition from the systems were put on trial in October
handle the volume. private hire operators. 2017. Another five of the same system
A new policy on training by will be implemented in March 2018.
time and trip may be introduced in Nanjing, Jiangsu Province During the year, Tianhe Bus
2018. This may give the School an Taxi Station garnered more than 2.7 million
advantage over private instructors. Our 70%-owned subsidiary, Nanjing followers on WeChat, which is nearly
ComfortDelGro Dajian Taxi Co., Ltd, is three times more than 2016. Through
Chongqing the City’s fourth largest taxi company, this platform, the Company was able
Driving Centre operating a total of 679 Compressed to bring in advertising revenue of
Our 90%-owned subsidiary, Natural Gas taxis. About 90% of its RMB1.3 million (S$0.3 million).
Chongqing ComfortDelGro Driver fleet was hired out during the year.
Training Co., Ltd continued to ensure Nanning, Guangxi Province
its remaining learners completed their SOUTH CHINA Taxi
driving courses for the year. Our 80% owned subsidiary, Nanning
Guangzhou, Guangdong Province Comfort Transportation Co., Ltd, is the
EAST CHINA Bus Station largest taxi operator in Nanning with a
Our 60%-owned Tianhe Bus Station fleet of 854 taxis.
Shanghai in Guangzhou served a total of 10.5 On 1 January 2017, as a result of
Taxi million passengers in 2017, a 13.9% protests by local taxi drivers following
Shanghai City Qi Ai Taxi Services Co., drop from the previous year due to the legalisation of third-party apps
Ltd is one of the premium operators strong competition from the high in Nanning, the local Authorities
in Shanghai with a fleet of 484 taxis. speed rail service, the growth of the instructed all taxi companies to lower
With the discontinuation of car population and the persistence of their rental rates to help taxi drivers
the Volkswagen Santana Vista car illegal bus operations. cope with the stiff competition from
model, the Authorities approved two Cargo revenue increased by 16% third-party apps. The Company did
other taxi models – the Volkswagen in 2017 as compared to the year so and was successful in retaining its
Santana Lavida and Volkswagen before, while the total number of taxi drivers.
Touran – as they are well accepted cargo items dropped by 9.3%. The During the year, the Company
and popular with both taxi drivers revenue share of the cargo business replaced 130 taxis, and converted 283
and commuters. Shanghai City increased from 30% to 40%. petrol-driven taxis into dual-fuel taxis.
Annual Report 2017 43OPERATIONS REVIEW
IRELAND
Cork, Dublin, Galway, Limerick
INTER-CITY EXPRESS COACH
ComfortDelGro Irish Citylink Limited, our wholly-owned
20.2 express coach subsidiary in Ireland, runs a network of
inter-City and Dublin Airport express routes linking
Cities such as Cork, Dublin, Galway and Limerick.
On the back of strong economic growth, demand
Revenue (S$’mil) for services across all routes increased, in particular
those offering direct services to Dublin Airport which
has been experiencing rising passenger volumes over
25 the last seven years. In 2017, a record-breaking 29.6
million passengers travelled through Dublin Airport on
the back of an increase in long-haul traffic, and a robust
performance from continental European routes.
Total operating fleet size The popular Limerick-Dublin Airport eireagle.com
service turned two in February 2017. ComfortDelGro
Irish Citylink also increased the frequency of two service
17 routes and introduced a direct connection between
Galway and Cork. It also made further improvements to
its online booking facility.
Five new DAF Altano buses were added to the fleet
Total number of employees during the year, and deployed on both the eireagle.com
Galway-Dublin Airport route as well as the eireagle.com
Limerick-Dublin Airport route. These coaches are not
only wheelchair-accessible but have USB ports, free Wi-
Fi and on-board toilets. To make coach rides even more
attractive to passengers, at-seat power sockets were
introduced on express routes.
Going forward, the Company expects to step up its
online marketing campaigns with the appointment of a
new digital marketing staff.
44 ComfortDelGro Corporation LimitedVIETNAM
Ho Chi Minh City
TAXI
We consolidated our taxi operations in Ho Chi Minh City
6.8 during the year and now operate just one company
– Vietnam Taxi (Vinataxi). A total of 93 cabbies from
ComfortDelGro Savico Taxi company joined Vinataxi as
part of this move. Vinataxi also disposed 115 older taxis,
Revenue (S$’mil) thereby reducing the average age of its 352-strong taxi
fleet to just 3.3 years old.
Vinataxi is ranked third in Ho Chi Minh City in terms of
352 fleet size.
Despite stiff competition, Vinataxi successfully
renewed its existing contracts to operate taxi services at
major pick-up points in the City.
Total operating fleet size It also continued to roll out different packages to
incentivise taxi drivers and attract new ones through
advertisements and referral schemes. To retain existing
141 drivers, for example, Vinataxi increased the bonuses
for taxi drivers during the country’s Chinese New Year
by 16%.
The incentive bonus for taxi drivers who completed
Total number of employees one year of their hiring contract and performed well was
revised to VND 11 million (S$668.69). Those who renewed
their contracts for another year were also rewarded with
incentives. Those who stayed on beyond the second year
received a Seniority Bonus. New drivers who joined for at
least six months were also rewarded as well. Since June
2017, ex-taxi drivers who re-joined the Company were
given VND 1 million (S$60.79) after completing three
months of their contract.
Leveraging on technology, Vinataxi launched its taxi
booking app for Android smartphones in September
2017 and the iOS version two months later. Users can
choose to pay the normal metered or flat fares on the
booking app. It also worked with Moca, a payment
company, to provide QR code payments on board
its taxis.
Aggressive marketing efforts also resulted in an
increase in revenue from taxi advertisements.
Annual Report 2017 45OPERATIONS REVIEW
MALAYSIA
Kuala Lumpur
AUTO LEASING, INSPECTION & TESTING SERVICES
Auto Leasing
2.6 Our subsidiary, CityLimo Leasing (M) Sdn Bhd, offers
auto leasing services in Malaysia through a fleet of 160
vehicles. Established in 1996, it provides both short-
and long-term leasing for a full range of passenger
Revenue (S$’mil) cars and light commercial vehicles. It is one of the
leading auto leasing service providers for multinational
corporations, especially those in the oil & gas, logistics
160 and infrastructure industries. The Company specialises
in dedicated telematics fleet management for clients
with round-the-clock nationwide technical and roadside
emergency assistance. Utilisation of our vehicles
Total operating fleet size remained high in 2017.
Inspection & Testing Services
41 Setsco Services Pte Ltd’s wholly-owned subsidiary,
Setsco Services (M) Sdn Bhd, provides civil engineering,
mechanical and non-destructive testing services in
Peninsular Malaysia.
Total number of employees
46 ComfortDelGro Corporation LimitedYou can also read
