ComfortDelGro’s quiet tech play and why it’s not sweating GrabCab

Within just a decade, Grab has gone full circle from an entrant challenging incumbent taxi companies to becoming one itself. In July, three months after getting a street-hail license in Singapore, it launched its own taxi service GrabCab. With 65 taxis signed up as of August, the company plans to hit 800 within three years.

The tech company says it doesn’t intend to attract drivers from rival car companies. But its entry – which comes with generous driver incentives typical of the super app – could stiffen competition in the city-state, where drivers are already in short supply.

Even so, ComfortDelGro, Singapore’s largest taxi company, is drawing on decades of experience to stay competitive. It also has a few plans up its sleeve.

The firm’s back-end booking system underwent a revamp last year, making way for new features and products. One of them will make the Zig app usable in markets outside of the city-state, Michael Huang, head of ComfortDelGro’s Singapore point-to-point mobility business, tells Tech in Asia.

This upgrade suggests that while the competition for both driver and passenger dollars in Singapore is heating up, the real competition lies beyond.

The city-state is the firm’s largest market, but its share of group operating profit – which totaled S$322.9 million (US$250 million) in 2024 – is shrinking as overseas markets like the UK become more profitable.

Despite increasing to S$210.3 million (US$162 million) in 2024, Singapore’s contribution to operating profit fell from 74% in 2023 to 65% by 2024.

Last year, the company recorded S$4.5 billion (US$3.5 billion) in revenue across its various businesses, which include public transport, taxi and private hire, and inspection and testing services.

The next big thing

After revamping its booking system and moving to a cloud-based architecture last year, ComfortDelGro is now working on several improvements to the Zig app, Huang says.

Cross-border functionality is one of them.

In the near future, a Zig user in Singapore will be able to book a cab in London via the Zig app, while the same would be possible for a UK user visiting Singapore.

Customers of taxi company A2B in Australia who are traveling to Singapore might be able to do the same. ComfortDelGro completed its acquisition of the firm last year.

Huang says ComfortDelGro is working on the feature’s “technical” components. However, he did not share a timeline for when it will go live.

Taking a leaf from China’s book

Tackling the supply issue

Entice, entice, entice