JAKARTA (TheInsiderStories) - Indonesia’s taxi operator company PT Blue Bird Tbk (IDX:BIRD) is more prudent rather than its rival, PT Express Transindo Utama Tbk (IDX:TAXI), a second largest taxi operator in the country, after the two taxi operates collaborate with ride-hailing-apps services.
A research note of Bahana Sekuritas shows the fare comparison between those taxi operators after they collaborated with ride-hailing-apps services. The Blue Bird taxi collaborates with Go-Car, a local ride service from Go-Jek and Express taxi with Uber Technologies Inc.
Gregorius Gary, an analyst of Bahana Sekuritas says, the partnership of Blue Bird with Go-car seems to be more rational than the collaboration between Express and Uber based on the discounts that are being offered.
He explains that the normal fare from Uber is Rp 4,032 per kilometre (km), with a 70 percent discount on the offering price. On the other side, Grab offers Rp 3,441 per km, with a 30 percent discount on the offering price.
Meanwhile, Go-car subsidizes 20-50 percent for Blue Bird from the normal fare Rp 4,459 per km. The subsidy is lower than two international ride-hailing-apps fares. However, this scheme of partnership gives more benefits to Go-car and Bluebird than the Uber-Express collaboration.
“Blue Bird will benefit from the collaboration because the number of passengers is expected to rise, and the company still can get the fare price (of Go-car). Go-Jek also gets the advantage because the total operation cars increases,” Garry added.
Bahana Sekuritas projected the revenues of Blue Bird to rise to Rp 5.3 trillion, and the bottomline at Rp 565 billion at the end of 2017. The number is expected to increase from Rp 4.85 trillion and Rp 494 billion (FY2016 estimates). The revenues in 2015 stood at Rp 5.47 trillion, and the bottomline is at Rp 824 billion.
Meanwhile, Express-Uber’s scheme is different. The taxi operator does not get any subsidies from Uber, even the prevailing price using Uber’s fare. Moreover, the management is still facing a restructuring on their internal problems.
Bahana recommends that the BIRD’s shares from ‘Hold’ to ‘Buy’ with the target price of Rp 4,750 per share, from the current share aty around Rp 4,100 per share on Monday (March 6). Additionally, Bahana recommends to reduce TAXI’s shares with the target price at Rp 135 per share, from the current price Rp 167 per share. (CS)