Times are bad. How bad?

Bad enough for ComfortDelGro to want to work with Uber.

Inevitable partnership?

ComfortDelGro Corp announced on Tuesday, Aug. 22, it has begun talks with Uber. Both parties will engage in "exclusive discussions" on a possible "strategic alliance".

Nothing has been set in stone yet and the deal might even fall apart.

But if it goes through, it is clear that ComfortDelGro's 15,500 taxis could be made available through Uber's app as a result.

Currently, rival Grab has already tied up with all other local taxi companies.

Uber is bleeding money globally and has been sustained with investor funds.

ComfortDelGro has been losing large chunks of its taxi business in Singapore to the private-hire car disruptors in the last few years, so much so the taxi industry is dying.

Odd bedfellows?

This alliance has raised a few eyebrows though.

In June 2017, it was reported that ComfortDelGro instructed its cabbies to target errant private-hire car drivers who do street hails and carry out other illegal practices.

In a text message sent to its drivers, ComfortDelGro asked its drivers to take photos of private-hire cars that pull up at taxi stands.

Cabbies were told to include a photograph of the private-hire car with the vehicle number shown clearly when reporting such infringements.

They should also include the date, time and location of the incident.

Uber will benefit

The inevitable partnership will likely result in Uber gaining the upper hand.

This is because when ComfortDelGro taxis are booked via Uber, the depreciating physical assets will still be owned by ComfortDelGro, while Uber holds on to the technology and remains asset-light -- unless both companies agree to some form of co-ownership.

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Complaints among taxi drivers

Encouraged to carry out cutthroat business practices aside, it appears traditional taxi drivers are not in favour of this alliance.

In the Singapore Taxi Driver Facebook group, one post has highlighted the sentiment supposedly prevalent amongst cabbies in Singapore:

The wholesale rejection of a ComfortDelGro-Uber tie-up lies with the fact that fare amounts will be depressed when rides are booked via the Uber app -- as Uber takes a 20 percent cut.

And if taxi rental rates still remain exorbitant in comparison to renting an Uber vehicle, drivers will jump ship and become Uber drivers full-time instead.

Related articles:

Video of a yard full of unhired taxis wins no sympathy for ComfortDelGro

Top photo by Adrian Wee