Southeast Asia’s leading ride-hailing company Grab has reportedly signed a deal for the purchase of all of the shares of Trans-cab, Singapore’s third-largest taxi operator.
The overall cost of the buyout was not disclosed in detail. Having said that, a source reported that the purchase is estimated to be around S$100 million (~RM344 million). This includes Trans-cab’s fleet of more than 2,500 taxis and private-hire vehicles, maintenance workshop, and fuel pump operations.
The acquisition is being done through Grab Rentals, the company’s private-hire department. With that being said, it is unclear whether the business, which began as MyTeksi in Malaysia in 2012, would have to disclose its purchase price to the United States Securities and Exchange Commission.
Speaking in an interview with The Straits Time, Trans-cab founder/chairman Teo Kiang Ang shared that the negotiations only began two months ago, and that government approval is still required for the agreement. “It has been a 20-year journey, and many of our drivers have journeyed with me from day one. I am really reluctant to sell, but considering that the buyer has good technology and a strong platform, drivers can get more jobs and earn more income,” he told the outlet.
In a separate interview with The Business Times, Trans-cab’s general manager Jasmine Tan also stated that the acquisition will help Trans-cab make a digital shift, ensuring that its taxi drivers can continue to remain competitive. It’s all revealed that the benefits that Grab drivers receive, such as Personal Accident Insurance, skill development through GrabAcademy, and rewards through its loyalty programs, will also be available for Trans-cab drivers.
On the other hand, some observes pointed out that Grab’s acquisition of Trans-cab is another blow to the taxicab business, which has apparently been in bad shape ever since the private rental industry was permitted to enter the transportation sector in 2013.
Sources: The Straits Times via VOCKET, The Business Times.
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