Bargaining Power of Customers The bargaining power of customers is low. This is because the fare prices are being regulated by the Public Transport Council (PTC) (Fare Regulation Framework, 2016). The fare formula is being calculated based on the Consumer Price Index, average monthly earnings, energy index (electricity and diesel) and lastly productivity extraction (Affordable Fares, Sustainable Public Transport, 2013). Bargaining Power of Suppliers The bargaining power of suppliers is low when come to fuel cost. The prices of the fuel are affected by a few factors such as the currency exchange rates, operating and capital costs, and internationally-traded wholesale fuel prices (Petrol prices in Singapore, (n.d.). Competitive Rivalry
The rivalry among the existing competition is low. Even though the new competitor such as Uber company has provided cheaper fare than taxi, the taxi remains close to 100% and revenue grew (AreComfortDelGro taxi keeping up with Uber, Grab, 2016).
1. 2. Li, H. (2016). Taxi positioning in the new age of Internet and industrial developmentresearch. Procedia Engineering, 137, 811–816. doi:10.1016/j.proeng.2016.01.320 3.
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- Management, Automobile, Fare