Grab set to be S’pore’s 6th taxi operator after being awarded street-hail operator licence

Grab will progressively expand taxi fleet to 800: LTA

Grab, hitherto best-known in Singapore for its ride-hailing services, is set to be the Republic’s sixth taxi operator after being awarded a street-hail service operator licence.

GrabCab’s 10-year licence will begin on 9 April, said the Land Transport Authority (LTA) in a news release on Wednesday (2 April).

Grab must ensure taxi fare structure is same as other operators

GrabCab, a subsidiary of Grab Rentals and sister company of GrabCar, will need to comply with the conditions of its licence, LTA said.

This includes meeting LTA’s safety standards and ensuring that partnership arrangements with drivers are non-exclusive.

Other terms include:

• ensuring that its taxis are easily identifiable by street-hail customers with a distinctive design and a prominent rooftop sign, among other features
• using LTA-approved vehicle models with sufficient boot space for a folded wheelchair or luggage, among other requirements
• adhering to the same fare structure components as other taxi operators
• displaying fare rates prominently for passengers, to maintain pricing transparency

Such licence terms are consistent with those of other existing street-hail operators, LTA added.

Grab to expand taxi fleet to at least 800

Under the licence, GrabCab will be allowed a grace period of three years to progressively expand their fleet, LTA said.

This is in order to meet the minimum size of 800 taxis required.

GrabCar currently holds a Ride-hail Service Operator Licence and a Car-pool Service Operator Licence.

Move will improve ride availability, says Grab

LTA said GrabCab’s entry into street-hailing service will give drivers and commuters more options.

The move is also expected to bolster the availability of taxis, it added.

The company told The Straits Times (ST) that the licence will help “address unmet consumer demand” in Singapore’s “supply-constrained market”.

It will also improve ride availability, especially during peak hours, late nights and in areas only accessible to taxis such as taxi stands and certain venues.

Additionally, GrabCab aims to accommodate the rising demand for point-to-point transport services expected in future and cater to passengers who prefer street-hailing over app-based bookings.

Grab’s 2nd attempt at entering S’pore’s taxi market

This is Grab’s second attempt to enter Singapore’s taxi market after its bid to acquire Trans-Cab in 2023.

However, the deal was abandoned the following year as Singapore’s competition watchdog ruled that it would reduce competition in the ride-hailing sector.

The five other taxi operators here —  Comfort, CityCab, Trans-Cab, Strides Premier and Prime — operate a total of about 13,000 cabs, according to ST.

Also read: Grab launches free shuttle bus services from Sentosa to HarbourFront during peak hours

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Featured image adapted from GRAB CAR registration on Facebook and TheSmartLocal.