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High COE prices hurt car-sharing platforms’ fleet expansion, electrification plans


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High COE prices hurt car-sharing platforms’ fleet expansion, electrification plans

HIGHER certificate of entitlement (COE) prices have constrained car-sharing platforms from expanding their fleets fast enough to meet the robust demand, and are also spoiling their plans to provide more electric cars, say industry players.

“The shortage of vehicles compared to the demand we’re seeing is very great,” said Kelvin Tay, chief executive officer at BlueSG.

Demand for shared cars have shot up, partly owing to record-breaking COE premiums with top executives of BlueSG, Tribecar and GetGo - popular car sharing operators in the city state - admitting that demand has begun to outstrip supply. They collectively operate 3,000 cars in Singapore – less than 1 per cent of the 650,958 cars on the road as of July 2022.

In addition, elevated COE prices are holding back these ride-sharing providers from growing their fleet, as they are keen to preserve positive unit economics; meaning, each additional vehicle should generate a profit, which is more important than the race to grab market share.

https://www.businesstimes.com.sg/garage/high-coe-prices-hurt-car-sharing-platforms-fleet-expansion-electrification-plans

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Hypersonic

Get Gone and SG Blu film no money to replace all the write off cars?

Too bad.

Less idiots on the road.

:D

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Supersonic
21 minutes ago, awhtc said:

High COE prices hurt car-sharing platforms’ fleet expansion, electrification plans

HIGHER certificate of entitlement (COE) prices have constrained car-sharing platforms from expanding their fleets fast enough to meet the robust demand, and are also spoiling their plans to provide more electric cars, say industry players.

“The shortage of vehicles compared to the demand we’re seeing is very great,” said Kelvin Tay, chief executive officer at BlueSG.

Demand for shared cars have shot up, partly owing to record-breaking COE premiums with top executives of BlueSG, Tribecar and GetGo - popular car sharing operators in the city state - admitting that demand has begun to outstrip supply. They collectively operate 3,000 cars in Singapore – less than 1 per cent of the 650,958 cars on the road as of July 2022.

In addition, elevated COE prices are holding back these ride-sharing providers from growing their fleet, as they are keen to preserve positive unit economics; meaning, each additional vehicle should generate a profit, which is more important than the race to grab market share.

https://www.businesstimes.com.sg/garage/high-coe-prices-hurt-car-sharing-platforms-fleet-expansion-electrification-plans

So who's fault for the high COE and who's fault that car sharing companies cannot expand their fleet? Lol.

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Turbocharged

High COE due to high bidding. You bid, I bid, he bid, everybody bid lor😁

Then those car sharing platform also bid high and price them high only lah. Look at grab prices. I try to book one trip from Tanjong Rhu to Genting Lane and the price is $21😂.

What to do? I also donno leh

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Supersonic
13 minutes ago, Arogab said:

High COE due to high bidding. You bid, I bid, he bid, everybody bid lor😁

Then those car sharing platform also bid high and price them high only lah. Look at grab prices. I try to book one trip from Tanjong Rhu to Genting Lane and the price is $21😂.

What to do? I also donno leh

Booking taxi le?

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Turbocharged
46 minutes ago, awhtc said:

 

The shortage of vehicles compared to the demand we’re seeing is very great,” said Kelvin Tay, chief executive officer at BlueSG.

 

This line really scares me. Means shortage of BlurSG cars when i feel one is already too many. 

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So which group was one of the main culprits in bidding the COE prices up to their current levels? 

My words of sympathy to the car-sharing platform towkays: f**k off. 

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Turbocharged
38 minutes ago, inlinesix said:

Booking taxi le?

Book taxi also high after booking fees, I never check. Anyway, I got car. Only that day wanna ask my wife go to Genting lane from TJR by herself. End up I say better send her🤣, cos petrol of 7km using less than 1 litre. Cheap cheap😅 since my car also under utilized😂

If COE goes like this. 5 years later I will take public transport liao. I don't want to give people money for nothing:dizzy:

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Turbocharged
5 minutes ago, Turboflat4 said:

So which group was one of the main culprits in bidding the COE prices up to their current levels? 

My words of sympathy to the car-sharing platform towkays: f**k off. 

Group one category of COE under Public transport and put those PHV, Taxi and Car sharing or whatever under there and let them go fight. Probably the cost of fare and fare prices will be higher than private cars?[laugh]

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Lol they crying crocodile tears ah so many SN* plate getgo CN7 and tribecar BYD elec cars on the road...

They are probably the ones with the deepest pockets to keep bidding higher and higher as their cars can be rented 24/7 compared to other rental companies renting to just one individual...

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Turbocharged
6 minutes ago, yellowshaun said:

Lol they crying crocodile tears ah so many SN* plate getgo CN7 and tribecar BYD elec cars on the road...

They are probably the ones with the deepest pockets to keep bidding higher and higher as their cars can be rented 24/7 compared to other rental companies renting to just one individual...

Busines model - find lots of investors, deep pocket and grab as much market value. Then when the market is captured, increase price to get back profits. Many of these kinda businesses around these days. Lose money first. But if cannot turn around then die lor

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Turbocharged

With a zero vehicle population growth policy, the only way these operators can grow their fleet is to take over privately owned vehicles. Without a separate category for them, the only way is at the expense of private car owners.

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2 hours ago, Silverkris said:

image.thumb.png.25f3be30fba896cb7e3659c9cd51916f.png

Just look at the number of accidents (downloaded from street directory) today only.

so many accidents in one day only?? that is really shocking

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Hypersonic

my heart bleeds.

last COE spike was caused by Uber entering SG in a big way. after a few years decided to pack up and leave and LCR was lelong-ing cars. 

recall going to Leng Kee with my friend (who had a 9.5yo car then) to look at LCR M3s, oops, I mean Mz3.

so no sympathy for these short term disruptors. 

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Moderator

This is precisely why COE will never go back to sub $30K or even $50K level in the future. When COE premium dropped by say $20K or more, these leasing / rental firms will be the first to rush in submitting their bids.. 

Business owners fighting with private car buyers, no prize for guessing who will be the ultimate winner. No matter what price these rental / leasing companies get their rides for, it will eventually be paid for by their customers. 

Actually the current high COE climate is a double edge sword, pushing more potential buyers to explore leasing options, triggering a spike in demand, and thereby pushing COE premium to an even higher level. 

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