Singapore taxi operator ComfortDelGro has partnered with the autonomous mobility company Pony.ai, while a top executive of digital bank GXS told Bloomberg that the firm aims to reach profitability by 2027.
ComfortDelGro, Pony.ai team up
Singapore-based taxi operator ComfortDelGro signed a Memorandum of Understanding (MoU) with Pony.ai, a global autonomous mobility company, to form a strategic partnership for large-scale commercial robotaxi operations.
ComfortDelGro, with a network of over 29,000 vehicles worldwide, brings operational experience and fleet management capabilities. Pony.ai, a company in autonomous driving solutions, leads city-level deployments in China and holds permits to operate fully autonomous mobility services in Beijing, Shanghai, Guangzhou, and Shenzhen.
ComfortDelGro and Pony.ai’s collaboration focuses on deploying autonomous vehicles (AV) and co-developing tailored AV solutions for international markets.
This partnership is part of ComfortDelGro’s growth strategy, following the 2022 establishment of its S$30 million Autonomous Vehicle Centre of Excellence, aimed at advancing AV operations and technology. For Pony.ai, this collaboration marks another step in its global expansion, adding to its existing partnerships in South Korea, Luxembourg, Saudi Arabia, and the United Arab Emirates.
GXS Bank targets profit by 2027
GXS Bank Pte, a digital bank backed by Grab Holdings Ltd. and Singapore Telecommunications Ltd., aims to become profitable by March 2027 by doubling its loan book every six months, said CEO Muthukrishnan Ramaswami in an interview with Bloomberg.
The bank targets financially underserved groups such as gig economy workers and small businesses, which often use the Grab app, providing valuable data for assessing creditworthiness.
GXS and other digital banks in Singapore face tough competition from established players DBS Group Holdings Ltd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd., which held 65% of deposits and 84% of lending in the first quarter, per Bloomberg Intelligence.
Ramaswami set goals of S$3 billion in deposits and a S$2 billion loan book within three years. The average loan size in Singapore is about S$6,000. He believes higher volumes and cost-effective digital channels will drive profitability.
GXS Bank recorded a 59% jump in losses for the financial year ended December 31, 2023, despite a 6x increase in net interest income, regulatory filings showed.
The digital bank’s loss for the year rose to S$208.2 million in 2023 from S$131.1 million in 2022, while net interest income jumped to S$14.9 million from S$2.4 million during the same period.
