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$2.19 cabcharge australia limited

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Gillysrooms

9,304 Posts.

64

22/06/18

00:30

Post #: 33871908
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Originally posted by whartanto ↑

The analogy is correct. To process payment, Cabcharge needs the credit card machines; they depend on taxi ranks, which they already control 90%+ on. There is no space to grow. As taxi drivers are disappearing, so does Cabcharge's source of income.

Uber is a different beast, it turns every car into a taxi. It is not merely a payment processing business, it is a GPS based matching software. Which is why Cabcharge is switching to this "iHail" software, like desperate attempt from blockbuster to turn into netflix's competitor after their bankruptcy (2012).

The government's cap on "Cabcharge tax" to reduce the credit card surcharge from 10% to 5% is a massive hit today, but it is just the beginning of the end. No other business in the world charge you 5% to pay with credit card. Even Amex only charge 3%.

Uber is a $60 billion dollar business, it can lose $1 billion a year for next 60 years. It burns as much money as Cabcharge entire ANNUAL profit in 7 days. Watching these 2 compete is like watching Walmart crushing a local deli.

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CAB Price at posting: $2.25 Sentiment: None Disclosure: Not Held
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