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Uber may team up with Singapore’s top taxi firm ComfortDelgro to take on Grab

By Reuters

  • 22 Aug 2017
Uber may team up with Singapore’s top taxi firm ComfortDelgro to take on Grab
Credit: Reuters

Singapore's biggest taxi operator, ComfortDelgro Corp Ltd, entered into exclusive talks with Uber Technologies Inc for a potential tie-up, it said on Tuesday, in a move that could help Uber in its fight with dominant ride-hailing firm Grab.

ComfortDelgro signed a letter with Uber for exclusive discussions to form a potential strategic alliance, which may include collaboration to manage fleet vehicles and booking software solutions in the city-state, the taxi firm said in a statement to the Singapore Exchange.

The taxi operator said the potential tie-up would also include the company's taxis being made available on Uber's app.

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ComfortDelgro is the market leader in Singapore with a fleet of 15,000 taxis. Like in other markets, traditional taxi firms in Singapore have been hit by the growth of ride-hailing firms such as Grab and Uber.

Uber, which has pulled out of massive markets China and Russia, has used Singapore as a springboard to grow in populous Southeast Asia.

ComfortDelgro said there was no certainty that the talks would result in any definitive agreement or transaction.

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It declined to provide any comments beyond the statement. Uber also declined comment.

Grab has dominated the market in Southeast Asia and says it has a 95 percent market share in third-party taxi-hailing and 71 percent in private vehicle hailing in the region.

ComfortDelgro has a total fleet size of about 44,000 buses, taxis and rental vehicles and operates in seven countries including Singapore, China, the UK and Australia.

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The company said earlier this month its revenue from the taxi business was expected to decline as the operating environment stayed challenging with the substantial increase in private hire vehicles.

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