Today, ComfortDelGro operates two main businesses – public transport and point-to-point mobility – supported by services including engineering and maintenance, vehicle inspection and driving education.
Each contributes differently to the group. Public transport provides stable, recurring earnings through long-term rail and bus contracts, while point-to-point mobility is shifting from its traditional taxi base towards a hybrid fleet-and-platform model, with greater emphasis on premium and enterprise customers.
ComfortDelGro’s long-term contracted public transport portfolio accounts for 67 per cent of group revenue. More than 97 per cent of its public transport contracts have tenures of at least five years, with more than a third extending beyond 10 years. Its rail network has also grown fivefold since 2021 to 427km, expanding beyond Singapore to Auckland, Stockholm, Paris and most recently, Copenhagen.
Together, these two businesses give ComfortDelGro several avenues for expansion, while reducing its dependence on any single business or geography. But diversification, said Mr Cheng, does not mean pursuing every opportunity that
comes along.
As the group evaluates where to grow, one consideration is what management calls its “right to win” – essentially, what ComfortDelGro can bring to the table. “In public transport, that could be our ability to bid for, mobilise and operate complex transport contracts, drawing on our rail expertise in Singapore as we pursue opportunities internationally. In point-to-point mobility, our reliability, service quality and operational excellence give us a clear competitive advantage as we continue to expand our premium and enterprise mobility business globally,” he explained.
The same question applies when ComfortDelGro considers an acquisition: What can it add to the business – and what can that business bring to the wider group?
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.