QR-code bookings, new cab models: ComfortDelGro moves to revitalise its taxi business
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Mr Michael Huang, who heads ComfortDelGro’s point-to-point mobility business in Singapore, told ST that the company is developing other enhancements to its Zig app.
ST PHOTO: GAVIN FOO
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SINGAPORE – To help less tech-savvy passengers get a ride more easily, ComfortDelGro plans to roll out a new service at the end of 2025 that will allow bookings by scanning a QR code.
The aim is to free customers such as elderly folk from having to navigate an app or digital interface. Instead, each code will contain a preset pickup location, which is automatically filled in when scanned.
This move is part of a wider effort by ComfortDelGro to rejuvenate its taxi business amid a persistent industry-wide decline
Other plans in the pipeline include the introduction of six-seater cabs to the company’s taxi fleet to cater for larger families, as well as a greater focus on meeting the demand for premium and corporate bookings.
Mr Michael Huang, who heads ComfortDelGro’s point-to-point mobility business in Singapore, told The Straits Times in late September that the company is developing other enhancements to its Zig app.
For instance, passengers will soon be able to book licensed cross-border taxi rides from anywhere in Singapore to Johor Bahru. Such bookings can also be made through the company’s hotline
Another change is the introduction of new cancellation and waiting fees
Other adjustments to the app’s algorithm have resulted in a 30 per cent to 40 per cent reduction in time needed to match a passenger with an available driver.
“I really feel that taxis are viable in Singapore,” Mr Huang told ST in his first interview since taking on his current role at ComfortDelGro in July. “They still serve the needs of the commuters, and they will co-exist with private-hire cars. That’s how I see it,” he said.
Mr Huang’s optimism stands in contrast to the plummeting taxi population in Singapore, which has fallen from a peak of nearly 29,000 cabs in 2014 to just over 12,000 today with the advent of ride-hailing apps like Grab and Gojek.
In comparison, there are more than 61,000 private-hire cars that can provide ride-hailing services as at June.
Over the past year, ComfortDelGro’s taxi fleet has tumbled from 8,669 in August 2024 to 7,816 in August 2025.
Asked about this decline, Mr Huang said there is a driver shortage in Singapore, and it is an issue afflicting taxi companies across the board. “Every player in the market is fighting for the same pool of drivers,” he said.
However, despite the fleet reduction, Mr Huang said ComfortDelGro has continued to maintain its market share of close to 65 per cent in the taxi industry. The utilisation of its cabs is also in the “very high 90s” percentage-wise, he added.
Another key issue, he said, is the decline in drivers’ earnings, especially for the full-time drivers who feel the pinch more acutely, though he did not give specific figures.
“We want to give a fairer fare to both the passengers and the drivers... That also means that our system has to work even smarter (to find the right balance),” he added.
Asked how else the company is making the cabby job more attractive, Mr Huang pointed to the benefits that ComfortDelGro provides.
Beyond support in areas like vehicle maintenance, the company spends $5.5 million a year on cabby welfare, and plans to spend another million on a new educational grant for its drivers.
“That’s where we feel that we can provide more value to drivers,” Mr Huang said.
“It’s tough times for them... So we have got to make sure that they have the means to earn, whether that means having the right vehicle, having the right fares, or having a Zig platform that offers them enough bookings.”
At the same time, he said, ComfortDelGro wants to continue to grow its pool of private-hire vehicles, which has increased from about 600 in 2022 to about 1,000 today. This is separate from its taxi fleet.
Mr Huang also highlighted the demand for the company’s limousine taxis, which are fully rented out. These are luxury vehicles like the Toyota Alphard and Lexus ES300, which provide transfer services that can cost up to $75 and command higher flag-down fares and higher distance and waiting fares.
“We think there are more products we can launch in this category,” he said, adding that the company will be rebranding its Cabcharge corporate service as ZigBiz.
One area where progress has stalled is the electrification of Singapore’s taxi fleet.
There are 500 electric taxis on the road here today, of which about 100 are owned by ComfortDelGro
Mr Huang said ComfortDelGro will completely phase out its diesel-powered Hyundai i40 taxis by the end of 2025, leaving only petrol-electric hybrids and fully electric cabs in the fleet, apart from a handful of MaxiCabs.
However, infrastructural constraints and a lack of fast chargers remain a major hurdle to electric cab adoption, he noted. There are also concerns about the lifespan of the battery, and the cost of replacing it.
Another development that has kept Mr Huang busy is the roll-out of autonomous vehicles.
In 2026, ComfortDelGro will operate an autonomous shuttle service called Zig Driverless in Punggol
Asked how he views driverless cars fitting in with ComfortDelGro’s taxi and private-hire vehicle business, Mr Huang emphasised that self-driving technology is being used only for fixed-route shuttles at the moment.
But he also noted that autonomous vehicles will help for underserved times of the day and underserved locations.
ComfortDelGro also believes that adding driverless vehicles to the mix will breathe new life into the taxi industry, as it will create more white-collar jobs and attract younger employees.
Still, Mr Huang said taxi drivers will be needed, even as Singapore moves into an autonomous future.
“There will still be a need for people to open doors, take care of luggage and help the elderly,” he said. “We will also still need a fair number of human drivers.”
