Competition with online-based transport company had pushed two listed companies with major business lines Taxis, PT Express Transindo Utama (TAXI) Tbk and PT Blue Bird (BIRD) have not ensured fleet expansion plans this year.
Reza Priyambada, Head of Research at PT NH Korindo Securities Indonesia, considered the hold back to be reasonable. According to Reza, the taxi company’s expansion will be done if the trend of demand for conventional taxi services increased significantly.
“The expansion of the taxi company is usually in a form of building pools or additional fleet additions. Of course there is no need to add pool to accommodate the fleet when the demand is not high, “said Reza.(*)
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