As I said before, a classic case of "barrier to entry" with CAB, no matter how much $$$ MBL throw at their venture.
CAB is entrenched and has been 30 years in the making to become the dominant credit provider in the taxi industry.
If MBL believe they can take any significant market share away from CAB, they must be kidding! Their financial engineering doesn't work here. They need more smarts than that.
The only way they can break the monopoly is to acquire taxi fleets i.e. the radio dispatch depots that are not in control by CAB or ones that are not in bed with them! Or they can buy taxi plates and operate them!
Either way, they could end up pouring money down a big black hole. They need scale and they just don't have it and they are yet to acquire it. It takes a long time to build that scale. If they take a ten year view, Lime Taxis might have a chance.
In the absence of any significant competitor, CAB's revenue streams are guaranteed. This is not even taking into account their overseas growth options.
Just as taxi plates around Australia have been and are a good growth investment, so too are CAB shares.
CAB Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
