Trans-Cab -- IPO

[CaptainTeo]

In response to 1), do you feel it is a good strategy to have agreement with grab whereby grab controls the new business model based on its super app and thus has the possibility of sidelining the rest of the taxi competitors? Fyi, in 2018 grab has about low 3 digits of personnel on grab mobile app development, comfort about mid 2 digits. I won't want to mention how many transcab has. Fyi, transcab does have a mobile booking app.

In response to 2), you've answered this question well. With a price war and the main revenue of the business centred on a price war to attract drivers for rental, I won't feel safe entering a saturated market. One other thing you have to take into account is the company existing loan on its taxi fleet which I won't go further but just to inform you this is an important financial note you should remember.

In response to 3), you are right on comfort. Transcab was 4100 about 3 years ago. Why I pose this question is because larger taxi fleet can increase the bargaining position of a taxi company in a few ways: bargaining for a better deal with grab, able to gain more advertising revenue on its cab, economies of scale in peripheral such as utilising capacity at its buildings, payments, maintenance etc.

If I were to invest in a taxi company from my dealings with them from best to worst, it will be comfort, smrt, transcab, premier , prime.
Honestly, the management vision of transcab, premier and prime are terrible laggards. Transcab is a distant 3rd in this case and are lucky to be third as premier and prime are worse. Only smrt and comfort strive to re-innovate their business model.

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1) transcab did have an app developed during 2014 which mentioned in their previous ipo. But was abandon when they forge an agreement with transcab. Their mdt also link to grab for calls. Msg will send to drivers asking for full support for grab calls. All 4 companies alliance with grab to compete with cdg, so when u mention sideline other taxi competitors. I dun think so. Cos the 4 taxi companies in a way band together to sideline cdg instead.

3) they dun have any bargaining power with grab. Advertising does not make up the substantial income and not much taxi on the road with advertisement. Having more building and technical team is a huge cost. Likewise for transcab, they do not seem to have a lot of empty cars in their building and their maintaince mainly contract out to vendors. The only bargaining power which cdg have is with the insurance companies. Lower premium due to large fleet they have.

Like u say, cdg Still strong a thanks to their London buses, China investment which make up 30% to 40% of their profit. Cdg is losing 1000 cabs yearly while others are fighting to keep their fleet. Do u know 1st 3 years which the driver are paying is sufficient to make full payment for the taxi.

 

[coolhead]

1) transcab did have an app developed during 2014 which mentioned in their previous ipo. But was abandon when they forge an agreement with transcab. Their mdt also link to grab for calls. Msg will send to drivers asking for full support for grab calls. All 4 companies alliance with grab to compete with cdg, so when u mention sideline other taxi competitors. I dun think so. Cos the 4 taxi companies in a way band together to sideline cdg instead.

3) they dun have any bargaining power with grab. Advertising does not make up the substantial income and not much taxi on the road with advertisement. Having more building and technical team is a huge cost. Likewise for transcab, they do not seem to have a lot of empty cars in their building and their maintaince mainly contract out to vendors. The only bargaining power which cdg have is with the insurance companies. Lower premium due to large fleet they have.

Like u say, cdg Still strong a thanks to their London buses, China investment which make up 30% to 40% of their profit. Cdg is losing 1000 cabs yearly while others are fighting to keep their fleet. Do u know 1st 3 years which the driver are paying is sufficient to make full payment for the taxi.

You are right on all the points above. Transcab initially targeted for 5000 taxis on the road but of course had to roll back their plans due to business disruption. However, as with all taxi companies, they have alot of empty cars in their building. If you can, have a look at the 2nd and 3rd floor, backyard. Since you are pretty well informed, why do you think transcab is a good buy in view of stagnant business opportunities with their core revenue fighting in a saturated market?
One thing for sure, the Teo family likes to accumulate properties as well as a very lucrative gas supply business.

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[mgx-alander]

cab company still can buy?

with grab and phv, its a dying biz, cdg at least got diversification across multiple biz

 

[appl888]

cab company still can buy?

with grab and phv, its a dying biz, cdg at least got diversification across multiple biz

Can stag on first day

 

[Charmeleon]

Bump bump bump

 

[kakashixx]

Can stag on first day

u know it could go the opposite way right? dont anyhow stag lol

 

[appl888]

and whats the size of the retail tranche

No news yet

 

[Asphodeli]

They resuscitated this dead horse for 2 times before according to their latest IPO filing. 3rd time's the charm?