Taxi tensions rise as GrabCab readies for Singapore streets

Grab’s entry into Singapore’s taxi market is likely to give the leading incumbent ComfortDelGro a run for its money. But what’s in it for the super app?

One advantage is that taxi drivers are considered to be more productive than private-hire vehicle drivers.

Studies have shown that taxi drivers want to devote more time to driving for a living. Meanwhile, private-hire car drivers include part-timers who have personal uses for their vehicles.

Taxi drivers are also more flexible as they can serve both ride-hailing and street-hailing passengers, whereas private-hire car drivers cannot do the latter.

Photo credit: The Business Times

But according to market watchers, Grab has one primary goal for its street-hail operator license: a reliable supply of drivers.

An executive for one of the incumbent taxi companies says new players such as GrabCab – Grab’s subsidiary that was awarded the taxi operator license – are likely to draw drivers from existing operators.

Walter Theseira, an economics professor at the Singapore University of Social Sciences, notes that Grab is “not interested in street-hail [rides] under the current business model.” After all, he points out, “platforms and taxi operators do not earn any commission” from them.

Grab gears up for recruitment

It is not the first time Grab has tried to enter the taxi market.

In 2024, the company abandoned plans to acquire taxi player Trans-cab after failing to obtain the all-clear from Singapore’s competition watchdog.

Photo credit: The Business Times

The proposed Trans-cab purchase was Grab’s third attempt at buying a taxi company in the country.

In 2017, there were talks to buy SMRT’s taxi fleet, but the deal fell through. In 2022, Grab’s discussion with Prime Taxi did not materialize into a transaction either.

Threats to ComfortDelGro