Singapore taxi firm buys majority of local Uber unit
Singapore’s largest taxi company ComfortDelGro Corp. said it bought 51 per cent of Uber Technologies’ Singapore car rental unit for $218 million and will form a joint venture with the ride-hailing firm, according to Bloomberg.
The deal for Uber’s Lion City Rentals will give ComfortDelGro control of a fleet of about 14,000 vehicles in the city-state, the company said in a filing after the market close on December 8. Uber will retain the remaining 49 per cent.
“ComfortDelGro has been in the taxi business for close to five decades and we have seen the industry evolve significantly. Despite the many changes that have taken place, taxis have remained a relevant option for people to get around the city. The question many have been asking is: For how long?” ComfortDelGro Chairman Lim Jit Poh said in a statement.
“We are confident that taxis will be around for a long time to come. But we are also aware that the personalised mobility business is a very different one now. By working together, we feel that we will be able to unleash a lot of synergy which will benefit consumers and drivers alike,” he added.
Under the agreement, ComfortDelGro taxi drivers will be able to receive ride requests on the Uber driver app, while allowing users of Uber’s app to directly book ComfortDelGro taxis. The move follows a year in which Grab, which competes head-to-head with Uber across seven countries in Southeast Asia, expanded its market share in private-vehicle rides to 72 per cent.
Grab President Ming Maa this week said Uber is “under siege” from multiple rivals in multiple geographies for the first time this year. Uber agreed in July to merge its operations in Russia and neighboring ex-Soviet republics into a joint venture, the second retreat from a major market by the San Francisco-based company. Last year it ceded China to rival Didi Chuxing in exchange for a minority stake.
Singapore’s largest taxi company ComfortDelGro Corp. said it bought 51 per cent of Uber Technologies’ Singapore car rental unit for $218 million and will form a joint venture with the ride-hailing firm, according to Bloomberg. The deal for Uber’s Lion City Rentals will give ComfortDelGro control of a fleet of about 14,000 vehicles in the city-state, the company said in a filing after the market close on December 8. Uber will retain the remaining 49 per cent. “ComfortDelGro has been in the taxi business for close to five decades and we have seen the industry evolve significantly. Despite the many...
Singapore’s largest taxi company ComfortDelGro Corp. said it bought 51 per cent of Uber Technologies’ Singapore car rental unit for $218 million and will form a joint venture with the ride-hailing firm, according to Bloomberg.
The deal for Uber’s Lion City Rentals will give ComfortDelGro control of a fleet of about 14,000 vehicles in the city-state, the company said in a filing after the market close on December 8. Uber will retain the remaining 49 per cent.
“ComfortDelGro has been in the taxi business for close to five decades and we have seen the industry evolve significantly. Despite the many changes that have taken place, taxis have remained a relevant option for people to get around the city. The question many have been asking is: For how long?” ComfortDelGro Chairman Lim Jit Poh said in a statement.
“We are confident that taxis will be around for a long time to come. But we are also aware that the personalised mobility business is a very different one now. By working together, we feel that we will be able to unleash a lot of synergy which will benefit consumers and drivers alike,” he added.
Under the agreement, ComfortDelGro taxi drivers will be able to receive ride requests on the Uber driver app, while allowing users of Uber’s app to directly book ComfortDelGro taxis. The move follows a year in which Grab, which competes head-to-head with Uber across seven countries in Southeast Asia, expanded its market share in private-vehicle rides to 72 per cent.
Grab President Ming Maa this week said Uber is “under siege” from multiple rivals in multiple geographies for the first time this year. Uber agreed in July to merge its operations in Russia and neighboring ex-Soviet republics into a joint venture, the second retreat from a major market by the San Francisco-based company. Last year it ceded China to rival Didi Chuxing in exchange for a minority stake.
