Editing ComfortDelGro (section)

== History ==
=== Comfort Group Limited ===
{{see also|Taxis of Singapore}}

In May 1970, the [[National Trades Union Congress]] (NTUC) announced plans to provide a cooperative taxi and minibus service.<ref>{{cite news |title=NTUC to set up taxi, mini-bus co-op |url=https://eresources.nlb.gov.sg/newspapers/Digitised/Article/straitstimes19700525-1.2.38 |work=The Straits Times |location=Singapore |date=25 May 1970 |access-date=20 March 2020 |via=NewspaperSG |page=5 |archive-date=20 March 2020 |archive-url=https://web.archive.org/web/20200320145444/https://eresources.nlb.gov.sg/newspapers/Digitised/Article/straitstimes19700525-1.2.38 |url-status=live }}</ref> The cooperative was aimed to target the problem of pirate or "ali baba" taxis which were rampant in Singapore at that time,<ref name="tng">{{Cite book|last=Tng|first=Ying Hui|title=Not Born In Singapore: Fifty Personalities who Shaped the Nation|publisher=Epigram Books|year=2015|isbn=9789814655415|location=Singapore}}</ref> and NTUC planned to get former pirate taxi drivers to drive the minibuses as part of the cooperative.<ref>{{cite news |title=Aid for pirate taximen plan |url=https://eresources.nlb.gov.sg/newspapers/Digitised/Article/straitstimes19700529-1.2.53 |work=The Straits Times |location=Singapore |date=29 May 1970 |access-date=20 March 2020 |via=NewspaperSG |page=7 |archive-date=20 March 2020 |archive-url=https://web.archive.org/web/20200320145444/https://eresources.nlb.gov.sg/newspapers/Digitised/Article/straitstimes19700529-1.2.53 |url-status=live }}</ref> The NTUC Co-operative Commonwealth for Transport Limited ("COMFORT" or "NTUC Comfort") was hence formed by the NTUC as a social enterprise together with the affiliated [[Income Insurance|NTUC Income]] and [[NTUC Fairprice|NTUC Welcome]].<ref name="tng"/> Comfort started operations in 1971 started with a fleet of 1,000 taxis, with the first taxis entering service at the end of January that year.<ref>{{cite news |title=Taxi licences for NTUC only? |url=https://eresources.nlb.gov.sg/newspapers/Digitised/Article/straitstimes19710106-1.2.45 |work=The Straits Times |location=Singapore |date=6 January 1971 |access-date=20 March 2020 |via=NewspaperSG |page=8 |archive-date=20 March 2020 |archive-url=https://web.archive.org/web/20200320145442/https://eresources.nlb.gov.sg/newspapers/Digitised/Article/straitstimes19710106-1.2.45 |url-status=live }}</ref><ref name=remembersg/>

In June 1993, NTUC Comfort was corporatised and renamed Comfort Transportation Pte Ltd.<ref name=taxi/> Comfort was subsequently listed on 6 June 1994 and became the Comfort Group Limited.<ref>{{cite web|url=https://eresources.nlb.gov.sg/newspapers/digitised/article/straitstimes19940607-1.2.5|title=
Comfort stock below strike price|publisher=The Straits Times|date=7 June 1994|page=1}}</ref> The listed company was owned by [[Singapore Labour Foundation]] (41.7%), its owner-drivers as a single block (approximately 20%) and the public (35%).<ref>{{cite web|url=https://eresources.nlb.gov.sg/newspapers/digitised/article/stoverseas19940528-1.2.6.4|title=Comfort float: Windfall for drivers|publisher=The Straits Times|date=28 May 1994|page=2}}</ref>

At the time of the merger announcement in 2002, Comfort's taxi business operated under the brand names of Comfort and Yellow Top with a combined fleet of approximately 11,340 taxis. It was Singapore's largest private bus operator then with 401 buses on unscheduled routes.<ref name=":0">{{Cite web|url=http://ir.zaobao.com.sg/comfortdelgro/news/comfort211102.pdf|title=Proposed merger of Comfort Group Ltd and DelGro Corporation Limited|website=Zaobao|publisher=Comfort Group Limited and DelGro Corporation Limited|date=21 November 2002|access-date=3 April 2020|archive-url=https://web.archive.org/web/20220307213053/http://ir.zaobao.com.sg/comfortdelgro/news/comfort211102.pdf|archive-date=7 March 2022|url-status=dead}}</ref> It also had a fleet of 730 taxis in [[China]] through joint ventures.

=== DelGro Corporation Limited ===
{{main|SBS Transit}}

Singapore Bus Services Limited was established on 1 July 1973 to unify bus services in Singapore.<ref>{{cite news|title=Merger plan by the 3 bus firms|work=[[The Straits Times]]|location=Singapore|date=14 April 1973|page=15|url=https://eresources.nlb.gov.sg/newspapers/digitised/article/straitstimes19730414-1.2.98}}</ref><ref>{{cite news|title=Better deal for bus commuters|work=The Straits Times|location=Singapore|date=1 July 1973|page=1|url=https://eresources.nlb.gov.sg/newspapers/digitised/article/straitstimes19730701-1.2.2}}</ref> The company was replaced by Singapore Bus Service (1978) Limited on 17 February 1978, which was then listed on the [[Singapore Exchange|Stock Exchange of Singapore]] (SES) on 26 June the same year.<ref>{{cite web|url=https://www.nas.gov.sg/archivesonline/data/pdfdoc/064-1978-03-20_moc.pdf|title=Conversion of SBS into a public company|publisher=Singapore Government - The Ministry of Communications and the Ministry of Finance|date=20 March 1978|archive-url=https://web.archive.org/web/20240118192838/https://www.nas.gov.sg/archivesonline/data/pdfdoc/064-1978-03-20_moc.pdf|archive-date=18 January 2024|url-status=live}}</ref><ref>{{cite news|title=Active Trading in SBS Shares|work=The Straits Times|location=Singapore|date=27 June 1978|page=1|url=https://eresources.nlb.gov.sg/newspapers/digitised/article/straitstimes19780627-1.2.9}}</ref><ref name=":0" />

By the 1990s, the company has diversified to other land transport businesses such as taxis,  as well as property and engineering businesses. In 1992, the bus operations were reorganised under a new subsidiary SBS Bus Services Pte Ltd.<ref name=":0" /> The original parent company Singapore Bus Service (1978) Limited was renamed DelGro Corporation Limited on 12 November 1997, from the words "Delta" and "Growth".<ref>{{cite web|title=SBS Limited changes its name to DelGro|url=http://eresources.nlb.gov.sg/newspapers/Digitised/Article/straitstimes19971113-1.2.51.12|website=The Straits Times|access-date=25 September 2019|date=13 November 1997|archive-date=25 September 2019|archive-url=https://web.archive.org/web/20190925134557/http://eresources.nlb.gov.sg/newspapers/Digitised/Article/straitstimes19971113-1.2.51.12|url-status=live}}</ref> On 10 December the same year, the bus subsidiary SBS Bus Services Pte Ltd was listed and renamed Singapore Bus Services Limited, before renaming again to [[SBS Transit]] in 2001.<ref name=":0" />

Until 1995, SBS/DelGro's taxi operations arm was Singapore Bus Service Taxi Pte Ltd (SBS Taxi Pte Ltd). CityCab was formed in 1995 with the merger of three companies – Singapore Airport Bus Service Ltd (SABS), SBS Taxi and Singapore Commuter Pte Ltd (a subsidiary of [[ST Kinetics|ST Automotive]]).<ref>{{cite news|title=New cab fleet|work=[[The New Paper]]|location=Singapore|date=19 May 1995|page=4}}</ref><ref>{{cite news|title=SBS, ST Automotive sign deal to merge taxi arms|work=The Straits Times|location=Singapore|date=19 May 1995|page=19|url=https://eresources.nlb.gov.sg/newspapers/digitised/article/biztimes19950519-1.2.48.2}}</ref><ref name=taxi>{{cite web|title=Milestones|url=https://www.cdgtaxi.com.sg/web/corp/about/milestones#3|publisher=ComfortDelgro Taxi|access-date=28 July 2019|archive-date=6 December 2019|archive-url=https://web.archive.org/web/20191206205031/https://www.cdgtaxi.com.sg/web/corp/about/milestones#3|url-status=dead}}</ref><ref name=remembersg>[https://remembersingapore.org/2014/10/02/the-evolution-of-singapore-taxis/ Taxi! Taxi! The Evolution of Singapore’s Taxi-Cabs], ''Remember Singapore''. Retrieved 3 November 2014</ref> CityCab then became DelGro's new taxi operations arm and was jointly owned by DelGro and ST Automotive (later ST Kinetics).<ref>{{Cite web|publisher=CityCab |title=Company Profile |url=http://www.citycab.com.sg/abtus/cc_history.htm |access-date=31 December 2007 |archive-url=https://web.archive.org/web/20071224065919/http://www.citycab.com.sg/abtus/cc_history.htm |archive-date=24 December 2007 |url-status=dead }}</ref>

At the time of the merger announcement in 2002, DelGro operated public bus services, taxis and car rental in Singapore, Malaysia, United Kingdom and the People's Republic of China. The Citycab operation ran 5,116 taxis, while SBS Transit was the largest scheduled bus operator in Singapore with 2,872 buses. DelGro had also just been awarded the operation of the [[North East MRT line]] and the [[Sengkang LRT line|Sengkang]] and [[Punggol LRT line|Punggol]] light rail systems.<ref name=":0" />

=== Merger ===
Comfort and DelGro's merger was first proposed on 21 November 2002.<ref name=":0" /> In its joint announcement, the merger aimed to "consolidate the transportation businesses of the Companies in order to enhance profitability and shareholder value".<ref name=":0" /> The merger was finalised on 29 March 2003.

The merger had a market capitalisation of over $1 billion, combined sales of $1.56 billion, and pre-tax earnings of $196 million. It set to provide a spectrum of transport services ranging from bus and taxi services to leasing and vehicle maintenance and inspections.<ref name=":1">{{Cite web|url=http://ir.zaobao.com/comfortdelgro/news/comfort221102_e.html|title=Comfort, DelGro merger to create $1b company|last=Wong|first=Wei Kong|date=22 November 2002|website=Zaobao|publisher=The Business Times|access-date=3 April 2020|archive-url=https://web.archive.org/web/20200725053127/https://ir.zaobao.com/comfortdelgro/news/comfort221102_e.html|archive-date=25 July 2020|url-status=dead}}</ref>

The new company's only rival then was [[SMRT Corporation]], which had a market capitalisation of around $930 million, sales of $500 million and pre-tax profits of $88.5 million then. The latter's fleet of some 600 buses and 2,000 taxis was smaller, but it was operating Singapore's rail network entirely.<ref name=":1" />