Many businesses around the world have been struggling with losses ever since the coronavirus outbreak started.
Except for online shops. They’re thriving.
In fact, believe it or not, the economic impact that Covid-19 has brought to the world is far, far worse than the health impact.
Although it is true that Singapore has not been hit as hard as some other countries, companies over here are also losing a lot of money due to this global tragedy.
ComfortDelGro Will Extend Daily Rental Rebate Until September
With more Singaporeans choosing to stay at home instead of roaming around outside, it is no surprise that taxi businesses have been affected pretty badly by the current situation.
Today, we’re going to be zooming in a little more on the measures that ComfortDelGro has been taking.
ComfortDelgro Taxi announced on Monday, 30 Mar, in a media release, that it would be extending its daily rental relief until September to hirers affected by the Covid-19 outbreak.
The company’s cabbies are currently receiving a total of $46.50 per taxi per day in rental relief. This comprises of $36.50 from ComfortDelGro and $10 from the Government’s Special Relief Fund (SRF).
The portion given by the company was initially supposed to reduce over time in April and May.
“The relief amounts from the company are supposed to reduce gradually in April and May under its original time. However, the worsening economic conditions and enhanced COVID-19 measures have made it imperative that more help be extended to cabbies,” said ComfortDelgro.
Thus, ComfortDelGro has decided to match the SRF amount of $10 till September and depending on the prevailing conditions, also extend the additional S$26.50 per day relief until then.
This means that hirers can expect to receive S$46.50 per day in rental relief from now until 30 Sep if the situation does not improve.
Could Cost The Company Up T0 $80 Million
Although it is extremely kind of them to do so, making a move like this does not come cheap.
It is expected to cost the company “as much as $80 million”.
ComfortDelgro said that this will push its taxi division into the red for the year ending 31 Dec 2020.
They also added that this will be the “first time Singapore’s largest taxi operator will post full-year losses”.
Priority Is To Help Their Cabbies
“Our priority is our cabbies’ survival. The dramatic drop in tourist arrivals, the increased number of people working from home, the enhanced measures to restrict crowd at shopping malls and eateries as well as the closure of nightspots, are having a massive impact on our cabbies,” said Ang Wei Neng, the CEO of ComfortDelGro Taxi.
“It is unprecedented. Our cabbies are part of the ComfortDelGro family and we want to help them continue to put food on the table.”
In addition to extending the rental relief, ComfortDelGro will also pass on all savings from the licence fee waiver and the $2,200 that is being given by the Government for each unhired taxi to cabbies through a waiver of the call levy till September.
All of these measures are over and above the $1,000 a month that the Singapore government is giving to self-employed persons for the next nine months.
Wow, it wouldn’t hurt to be a ComfortDelgro employee right now.
Here’s a simplified summary of the South Korea martial law that even a 5-year-old would understand:
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