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ComfortDelGro (CDG) has decided to extend the daily rent relief until September 2020 to help drivers affected by the COVID 19 outbreak.
CDG drivers have received $ 46.50 a day since the launch of the point-to-point support package in February.
This includes $ 10 from the Government Special Assistance Fund and $ 36.50 from the Company.
CDG's contribution is quite significant considering that most other taxi and hail shipping companies spend about $ 20 a day ($ 10 + $ 10) to support their drivers.
The taxi operator said he originally planned to gradually reduce his relief amounts in April and May.
"However, deteriorating economic conditions and improved COVID-19 measures have made it imperative to provide more assistance to taxi drivers," CDG said in a statement.
Due to current circumstances, CDG will maintain its current relief amount to ensure this Drivers will continue to receive $ 46.50 a day until September 30, 2020 as long as the situation doesn't improve.
The move is expected costs up to $ 80 million and will effectively bring the company into the red for the year ending December 31, 2020.
It is the first time that Singapore's largest taxi operator has posted a loss for the whole year.
Ang Wei Neng, CEO of ComfortDelGro, said that the company's priority in these unprecedented times is taxi drivers.
"Our taxi drivers are part of the ComfortDelGro family and we want to help them continue to put food on the table," he said.
In addition to extending the rent relief, CDG will pass on all savings from the license fee exemption and government tax relief to taxi drivers by September 2020.
Selected image source: Tam Ging Vienna via probutterfly.com
