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QuestionsCategory: MiscellaneousComfortDelGro to take 51% stake in Uber business
Ang Henry asked 4 years ago

Hi Victor and/or Rusmin,
What is your take for the above that has happened recently, is it considered one of the lifesaver for CDG?

2 Answers
Jieren Zheng answered 4 years ago

I am interested in this discussion too.
From what I heard that LCR doesn’t really earn much from it, I’m wondering if it will generate at least 10% ROIC. Seems like a bad acquisition given unclear certainty.

Jieren Zheng replied 4 years ago

There’s a piece of research here though:

Victor Chng replied 4 years ago

I couldn;t find how much LCR is generating, from what i see seem like a overpay asset too

Jieren Zheng replied 4 years ago

Maybe we can pay $20 for their bizfile? :p

Victor Chng replied 4 years ago

LOL, will think about it :)

Victor Chng answered 4 years ago

Hi Henry,
Uber and Grab are definitely affecting CDG’s business. As much as we hope they work with either one of them through using the app. The direction CDG is going seem to be very capital intensive now.

Victor Chng replied 4 years ago

We will sit on the fence and see how the collaboration work out because i don;t think the user of the app will call for taxi but nevertheless we just observe from far at the moment.

Ang Henry replied 4 years ago

And also the deal has to be approved first before the collaboration can proceed if I am not wrong.

Victor Chng replied 4 years ago

Did not know about that, thanks for the inform henry