Grab confirms acquisition of SG taxi operator Trans-Cab (update)

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Grab has confirmed it will acquire 100% shares of Singapore’s third-largest taxi operator, Trans-Cab, through its private-hire car rental arm GrabRentals.

Grab did not disclose the value of the deal, but The Straits Times reported that the figure is around S$100 million (US$75 million). The transaction is expected to be closed in the fourth quarter of this year, pending regulatory approvals and meeting other customary closing conditions.

With this acquisition, Grab will have control of over 2,200 taxis and more than 300 private-hire vehicles, including Trans-Cab’s maintenance workshop and fuel pump operations.

“By boosting the number of drivers on our platform and helping them to operate more efficiently, we improve how quickly and reliably we find a ride for our passengers, whenever they need one,” Yee Wee Tang, managing director of Grab Singapore, said in a statement.

If the deal materializes, it will be the first time Grab has successfully acquired a Singapore taxi firm.

The super app is currently focusing on pursuing profitability. Its revenue in Q1 2023 surged 130% year on year to US$525 million. At the same time, it has also reduced its adjusted losses for the quarter by 77% year on year. The firm aims to achieve group adjusted EBITDA breakeven in the fourth quarter of this year.

In a surprising move, the company slashed 1,000 jobs last month – about 11% of its workforce – to manage costs and ensure its long-term growth.

Earlier this year, Grab onboarded Tin Pei Ling, a Singaporean politician, as its director of public affairs and policy in the city-state. She was later shifted to a corporate development role.

Founded 20 years ago, Trans-Cab is Singapore’s largest private taxi provider. In 2019, it announced a partnership with Gojek, allowing users in Singapore to book Trans-Cab taxis through Gojek’s app.

See also: Making sense of Grab’s surprising U-turn from ‘no layoffs’ stance

Update (July 20, 1:00 pm): This article was updated to include an official statement from Grab.