News Summary

• The deal, Grab’s first local competitor acquisition, is expected to close in the fourth quarter of 2023 and includes “Trans-cab’s taxi and car rental business, maintenance workshops and fuel pump operations.” Founded in 2003, Trans-cab started with a fleet of 50 taxis and tried to go public twice.
• In April, Singapore’s SMRT announced its ride-hailing operator Strides Taxi would merge with Premier Taxis to bring together a combined fleet of about 2,500 taxis, becoming the country’s second-largest taxi operator.
• “Consumer behaviors have shifted and we’ve recognized for some time the need to digitize the business and ensure our taxi drivers can continue to be competitive,” Jasmin Tan, general manager of Trans-cab, said.
• Grab’s technology will enable Trans-cab taxi drivers to manage their earnings and receive bookings from Grab’s platform and the existing call center of Trans-cab.
• Consolidation via mergers and acquisitions is on the rise in the tech industry as tight private capital and a slow initial public offering market due to the economic downturn are impacted by growing inflations and high-interest rate headwinds.
• Singapore’s ride-hailing and food delivery company Grab has signed an agreement for its car rental unit Grab Rentals to acquire Trans-cab, the city-state’s third-largest taxi operator.