I speculate taxi population will take a dive for the next 2
years at least due to the hike in COE , also the economy situation
in Europe and last for not least , the completion of downtown line
in 2015 .
Most taxi companies will NOT come out with any new taxis ahead
of their current fleet .
The Taxi population is not going to dive, in term of
rental, it is a bread and butter for some cabby companies,
what will happen is the changing of taxis fleet will get
faster and faster, and with it, rental will go higher and higher
for newer and newer cabs on the road.
Economy is cyclical, I just downloaded 50 sonatas at west coast
port, more to come, epica and mercs. Business is not about now, it
about future, it about long term prospect, and long term meaning a
year and above, that is how taxi management come out with strategy
plan.
Taxi companies is not afraid of COE, they can put it on cabbies
like you and me and the pax, companies like SMRT, comfort delgro,
or even transcab is left pocket fork out, right pocket fork in,
just a matter of different account only.
COE is going to go up higher, logic will tell you that rental of
taxi will go up somewhere in future on the assumption of COE going
higher, so buy now and keep, next year COE goes up, rental goes up
and they register the new car bought in today to upper
the rental.
