A ride-hailing firm and a taxi company walk into a bar

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Hello readers,

Growing up, I often watched Power Rangers with my younger brothers. I always loved it when the show rolled out the Megazords – giant fighting machines usually formed by combining smaller machines called Zords – because it usually heralded a really cool fight sequence.

Here at Tech in Asia, we’ve likened mergers and acquisitions to Megazords a handful of times – and for good reason. After all, both M&As and Megazords involve several different entities coming together to create something bigger and more powerful, capable of achieving great feats.

So for today, we’re diving into a specific deal: super app Grab’s acquisition of Singapore-based taxi company Trans-cab. Let’s get into it.

Today we look at:

• Why Grab’s plans to acquire Trans-cab make sense
• Social media app Bondee’s new CEO
• Other newsy highlights such as layoffs at Modalku and Apple Pay’s official launch in Vietnam.

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Taxi, taxi!

Image credit: Timmy Loen

Grab plans to acquire Trans-cab, Singapore’s third-largest taxi operator, and it’s a move that makes perfect sense. Here’s why:

• Supply and demand: The deal will give Grab will have access to Trans-cab’s fleet of drivers and vehicles, improving the super app’s ability to meet demand. At the same time, Trans-cab can increase the efficiency of its operations by tapping into Grab’s tech expertise.
• Cherry on top: Grab can also draw from Trans-cab’s experience to optimize the operations of GrabRentals, its private-hire car rental arm. A larger fleet will boost Grab’s cost efficiency in auto insurance, parts procurement, and other areas as well as ease constraints in vehicle supply.
• Question mark: Grab and Trans-cab expect the deal to close by the fourth quarter of this year, but they’ll have to get regulatory approval first.

Read more: Does combining Grab with asset-heavy Trans-cab make sense?

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