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Banking & Finance

Savico closes ComfortDelgro Savico Taxi

Released at: 16:15, 26/03/2018

Savico closes ComfortDelgro Savico Taxi

Photo from cafef.vn

Taxi company closed to preserve funds and reengineer its taxi-related business plans.

The Saigon General Service Corporation (Savico) has advised the State Securities Commission and the Ho Chi Minh Stock Exchange that its taxi brand - ComfortDelgro Savico Taxi - has been closed to preserve funds and reengineer its taxi-related business plans.

Even though ComfortDelgro Savico Taxi has operated in Ho Chi Minh City for a long time, its market share has always been relatively modest, with a fleet of only some 400 vehicles compared to Vinasun Taxi’s fleet of more than 6,000.

The taxi company has incurred high costs due to constant improvements in its vehicles and service quality. However, tough competition from Grab and Uber has seen it struggle to make much profit from the investment.

ComfortDelgro Savico Taxi, according to Savico’s 2017 report, made only VND235 million ($10,300) in profit, down from around VND3.3 billion ($145,000) in 2016 and nearly VND7 billion ($307,000) in 2015.

The ComfortDelGro Corporation Limited, a Singaporean multinational land transport company, said that ComfortDelgro Savico Taxi merged with Vinataxi (70 per cent of which is owned by ComfortDelGro) on March 16.

According to figures from the city’s Department of Transport, as of 2017 there were around 35,000 taxis on the city’s streets, including around 24,000 Grab and Uber taxis.

ComfortDelgro Savico Taxi was opened in 2005 as a joint venture between Savico and ComfortDelGro.

Savico shares were listed on the Ho Chi Minh Stock Exchange on June 1, 2009 to further expand the market and develop business activities in Ho Chi Minh City, Hanoi, Da Nang, and the Mekong Delta.

Through 35 years of establishment and development, with 12 years operating as a joint stock company, Savico has developed a strategic orientation to become a focused investment company in three areas: Commercial, Real Estate Services, and Financial Services.

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