Grab is buying Trans-cab, Singapore’s third-largest taxi operator, the ride-hailing company announced on July 20.

Trans-cab entered the liberalised taxi market in 2003.

Trans-cab has a combined taxi and private-hire-vehicle (PHV) fleet of some 2,200 taxis and more than 300 private-hire vehicles.

The acquisition includes Trans-cab’s taxi and car rental business, maintenance workshop, and fuel pump operations.

The purchase is for an undisclosed amount.

Teo Kiang Ang, founder and chairman of Trans-cab said: “Trans-cab is very close to my heart, and our taxi drivers are like family. Together with them, we grew Trans-cab from just a small fleet of 50 taxis two decades ago, to become Singapore’s second largest taxi company at one point."

The Straits Times reported that Trans-cab grew to become the second-largest taxi firm here at one point within 10 years of starting, overtaking SMRT Taxis, which is owned by the rail operator.

SMRT Taxis, then bought Premier Taxis in 2023 and rebranded as Strides, with 2,500 vehicles.

ComfortDelGro is still the largest taxi operator with around 8,800 taxis and 60 per cent of market share.

"As we consider their future and what is best for them, I feel assured that with Grab, we have found the right partner to hand over Trans-cab to, who will do what is best for the drivers and the business,” said Teo

Reason for acquisition

Nasdaq-listed Grab’s stock last traded at US$3.51, down from more than US$16 in late 2021.

“Consumer behaviours have shifted and we’ve recognised for some time the need to digitise the business and ensure our taxi drivers can continue to be competitive. We are confident this deal protects their future,” Jasmine Tan, general manager of Trans-cab said.

Grab added that Singapore has faced an industry-wide driver supply crunch since the pandemic, resulting in higher fares as prices surge due to demand and supply imbalance.

It said acquiring Trans-cab’s taxi and car rental business will give Grab a larger base of driver-partners, benefiting passengers with more reliable allocation, especially during peak hours.

The company has worked on a number of initiatives to improve driver supply, such as by streamlining its onboarding process for new driver-partners, or by optimising its current driver-partner pool through tech, it added.

Grab added in its release that it plans to launch an enhanced Grab Driver 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.

Other benefits for Trans-cab drivers who are on the Grab platform include benefits offered to all Grab driver-partners, such as free coverage through Grab’s Personal Accident Insurance whenever they are online on the Grab platform.

Driver-partners can also participate in Grab’s loyalty programs for additional rewards.

Top photo via Unsplash