Grab Acquiring Trans-Cab In S$100 Million Acquisition
Ride-hailing company Grab is acquiring Trans-Cab — the third-largest taxi operator in Singapore.
The deal is expected to be completed by this week for about S$100 million.
Source: YouGov
Trans-Cab reportedly owns more than 2,200 taxis and more than 300 private-hire vehicles.
Grab reportedly acquiring Trans-Cab by end of this week
According to Grab, they have signed an agreement for Grab Rentals to acquire 100% of shares in Trans-Cab, Singapore’s third largest taxi operator.
Image by MS News
The acquisition includes Trans-cab’s taxi and car rental business, maintenance workshop, and fuel pump operations.
Trans-Cab currently owns about 2,200 taxis and 300 private-hire vehicles, which Grab believes would bring gradual income growth to the business.
The Straits Times (ST) cited its sources as saying the negotiation for the deal, reportedly worth around S$100 million, started about two months ago.
Trans-Cab general manager Jasmine Tan said the company is confident that the deal with Grab will protect the future of their taxi drivers amid technological disruptions.
“Grab’s industry-leading tech will help our taxi drivers drive more productively and safely while serving their passengers better.
“We are entering this deal with full assurance that Grab will do their best to safeguard the livelihoods of our taxi drivers,” she said.
Trans-Cab drivers get access to same technology & benefits as Grab’s
With the acquisition, Trans-Cab drivers can adopt technological innovations from Grab to maximise productivity and earnings, such as:
- an enhanced Grab Driver application combined with Trans-Cab’s mobile display units for a more streamlined booking system
- large in-vehicle displays for drivers to manage all jobs easily, including street hails.
Trans-Cab drivers will also enjoy the same benefits as Grab drivers: upskilling programmes, insurance coverage, and loyalty programme rewards, among others.
Transaction approved by board of directors
As for Grab, the acquisition allows the company to have a more extensive base of driver-partners.
This would, in turn, benefit passengers too, as they can expect a more reliable allocation of drivers during peak hours.
Grab said the board of directors of both companies had approved the transaction, which is expected to close in Q4 2023.
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Featured image by MS News.Â
