Seriously, I think CDG is not fighting a war. It is either too confident or too complacent.
I am thinking of the war online. The war on communication and propaganda. I search online Grab recruitment of drivers and CDG's. Here goes:
I saw incentives after incentives. Those who are newly signed-up and those who are already with them. This is not easy and I felt the sincerity or (aggressiveness) in getting driver's to cross over and stay. Please note that many promotion on bank deposits are only for new funds and the same with telecom contracts.
So how is delgro doing ?
Cold. How about the benefits?
Lack details. Hardly enticing.
Next war front. Those of commuters:
This website show promotion from both Grab and Delgro.
I saw dozens of promotion code, many as high as $10, with tie-up with SIA, UOB card etc. There are also plenty of reward options with grab points.
Look at Facebook:
A complaint about wrong calculation of reward points in September was promptly attended to with request for PM and more information.
Well, CDG also have promotion code with their master pass App. They have $1 $3 offer and the most generous of $15 with DBS pay lah. But...
Let's see:
I look at several newer posts and the issue of drivers unawareness of promotion, as well as the interface problem of master pay is obvious.
There are also valid feedbacks about link of credit cards promotion etc but with no reply from management except one. You go check out their Facebook ba.
Next: 攻心 (the war on the heart of driver's)
Grab encourage commuters to show appreciation to drivers and company will give free mooncake to them. Well, not a big deal. But it matters to me.
There were plenty of "soft" campaigns. Child seat booster for example...
CDG has a lot of news on road closure and a lucky winner of a grand draw.
COLD....
I am not sure if CDG management just look at hard cold numbers and think that is all to their business. With such glaring difference, I am not surprised with the straits time news that 3000 drivers from CDG had jumped in the month of September.
Conclusion:
Battles might be won with weapons but war lost with words.
In this case, it is lost in both hardware ($$) and software.
Grab should be happy burning the 2 billion cash, and seeing the complaceny of CDG.
骄兵必败
If you read Grabs facebook page, there is also a lot of negativity among mainly customers who complain about the fares, after netting promo, about the same or even sometimes mroe ex than CDG.
ReplyDeleteActually, a comment made by someone makes sense..Grab is essentially losing money but comfort is making less money..if and when Grab stops all this promo or incentives or maybe even pulling out when their investors stop throwing good money after bad this would definitely push the stock aggressively up.
This is hopeful thinking
SG dividends,
ReplyDeleteI did not read every comments in detailed. I scan thro the recent page and comments and etc. Personally, the sense of complacency and level of negativity is quite clear.
Personally, a simple calculation made with 30000 PHV with 10 rides of $4 subsidy means they can last 4.5 years
I think CDG think the same way as you. They can't outlast us. Let them burn LoL
I just remind myself of Amazon in china; and OPEC with shale oil. I think Grab is bigger than just a PHV rental company. The more I see their game plan, it's about scale and the e-platform. Reward points, link up with different vendors etc. I am not sure who will blink first. You assume Grab will blink first because they are losing money and CDG is earning less.
I think of it as expectation. Grab expect to lose money to gain market share. They will continue as long as they gain share at the expense of CDG
Can we say we expect CDG to earn less? Maybe? We need to understand that the battle is not just with drivers. The way CDG piss commuters with the CMI app...
Whatever it is, I bet with u that we have not seen the worst in terms of taxi operations. It will show out either in this quarter result or next.
Nonetheless, I still think it's a good investment at a good price. Many says $1.8-$1.9 is what CDG is worth without the taxi component.
ReplyDeleteSo u could say it is fairly valued now. If u think the taxi component can return to former glory days then it is cheap.
I am not in a rush to invest. If $1.9 is fair discounting taxi operations. I want a price with MoS from that so that I can "gain" maybe I dun get that price, but it's fine
If CDG is aggressive in fighting back. I might be more tempted. Because I can increase the rate of bleed of Grab. And make Grab think twice.
ReplyDeleteIn the war of commuters, at peak hours, there is hardly any difference in price due to. No surge charging. We all know peak hours is also where drivers earn.
I will hit in that area. But what do I know, I am a keyboard warrior
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