Grab will acquire Singapore’s third-largest taxi operator Trans-cab, which has a fleet of more than 2,500 vehicles.
Announcing the move on Thursday (Jul 20), the two companies said 100 per cent of the shares in Trans-cab will be acquired through Grab Rentals.
“The acquisition includes Trans-cab’s taxi and car rental business, maintenance workshop and fuel pump operations,” they said in a joint media release.
The deal is expected to close in the fourth quarter of 2023, subject to regulatory approvals and other customary closing conditions.
Trans-cab’s general manager Jasmine Tan said consumer behaviours have shifted and the company recognises the need to digitise the business.
She added that the company is entering the deal with “full assurance that Grab will do their best to safeguard the livelihoods of our taxi drivers”.
Grab said it plans to launch an enhanced application that will be integrated with the mobile display units in Trans-cab taxis.
The app will enable Trans-cab taxi drivers to manage their earnings and receive bookings from the Grab platform as well as Trans-cab’s existing call centre, all through a single platform, it added.
Trans-cab drivers that join the Grab platform will also receive benefits offered to all Grab driver-partners, including free coverage through Grab’s Personal Accident Insurance.
Grab said passengers will also benefit from its larger pool of drivers.
“By boosting the number of drivers on our platform and helping them to operate more efficiently, we improve how quickly and reliably we find a ride for our passengers, whenever they need one,” said managing director of Grab Singapore Yee Wee Tang.
Grab’s acquisition of Trans-cab follows the merger of Strides Taxi and Premier Taxis in May to form Singapore’s second-largest taxi operator.
ComfortDelGro has the largest fleet of around 8,700 taxis, according to data as of February 2023.
Source: CNA, Agencies