ComfortDelGro Savico Taxi, a joint venture between ComfortDelGro and Saigon General Services Corporation (Savico), officially withdrew from the taxi business after failing in the race with heavyweight competitors.
|ComfortDelgro Savico Taxi has decded to fully withdraw from the Vietnamese taxi market (Illustration image) |
Savico has announced stopping the operation of ComfortDelgro Savico Taxi due to massive losses. The Board of Directors of Savico has completed the procedures to recoup the company's investment in this joint venture.
At present, Savico holds a 40.03 per cent stake in ComfortDelgro Savico Taxi. As of December 31, Savico's interest in the company was evaluated at VND31.5 billion ($1.37 million) and the company expects to collect VND31.47 billion ($1.37 million) from the withdrawal.
Previously, in March 2018, ComfortDelGro Savico Taxi announced suspending operations. The move came after the operations of several traditional taxi firms were impacted by Uber and Grab. However, at the time, Savico said that ComfortDelGro Savico Taxi’s decision was to look for other business opportunities as well as safeguard the capital that Savico and ComfortDelgro contributed to the joint venture.
Then, ComfortDelGro published its financial statement for 2018, reporting $3.3 million of revenue from the Vietnamese market in 2018, only half of the figure of the previous year and accounting for only 1 per cent of the group’s total revenue.
In addition, according to Savico’s 2017 financial report, the joint venture had total assets of VND92 billion ($4 million), however, its after-tax profit was only VND235 million ($10,200). In 2016, its pre-tax profit was VND4.1 billion ($178,300), equalling 53 per cent of its annual plan.