JAKARTA. PT Blue Bird Tbk (BIRD), one of the largest taxi companies in Indonesia, raised the fare of its regular taxi services for the Jakarta area by 6.1% to compete with Grab and Gojek.
Edbert Surya and Adrian Joezer, Analysts of Mandiri Sekuritas, considered the new tariff as a positive catalyst that would support BIRD's performance. "We believe that increasing the fare of regular BIRD taxis will be a positive catalyst in 2020," they explained through an official statement on Monday (16/12) today.
The increase in fare is expected to have little impact on the number of regular taxi passengers. However, Mandiri Sekuritas assessed that the reduction in the number of passengers will not have a significant impact, because the number is quite limited.
In addition, BIRD plans to strengthen its advertising business line. BIRD is also projected to be able to offer more expensive advertising prices, because the number of its fleet has increased.
During January-September (9M) 2019, BIRD's revenue declined by 4.7% year on year to Rp 2.96 trillion. With a net profit margin of 7.7% in 9M 2019, BIRD recorded a net profit of Rp 229 billion. (KR/AR)