Ride-hailing giant Grab is acquiring Trans-Cab, Singapore’s third-largest taxi operator.
The purchase – for an undisclosed amount but understood to be more than $100 million – includes some 2,200 taxis and more than 300 private-hire vehicles which Trans-Cab owns. It also includes Trans-Cab’s vehicle workshop and fuel pump operations.
The acquisition is done through Grab Rentals, the private-hire arm of Grab. It is unknown if the company, which started out as MyTeksi in Malaysia in 2012, would have to declare its acquisition price to the United States Securities and Exchange Commission.
Trans-Cab founder and chairman Teo Kiang Ang told The Straits Times that negotiations started only two months ago, and that the deal will have to be approved by the authorities.
Mr Teo said: “It has been a 20-year journey, and many of our drivers have journeyed with me from day one. I am really reluctant to sell, but considering that the buyer has good technology and a strong platform, drivers can get more jobs and earn more income.”
Mr Teo, whose other core business is the bottling and supplying of cooking gas, said he will use the proceeds of the sale to “explore other business opportunities”.
The two companies said they expect the deal to be completed in the fourth quarter.
The Straits Times
