Grab to acquire Trans-cab through its GrabRentals arm

SINGAPORE, 20 July, 2023 — Grab Holdings Limited (NASDAQ: GRAB) and Trans-cab Holdings Ltd (“Trans-cab”) today announced the signing of an agreement for Grab Rentals Pte. Ltd. to acquire 100% of the shares in Trans-cab. Trans-cab is Singapore’s third largest taxi operator, a familiar and well-respected local brand that has been serving Singaporeans since 2003. Trans-cab has a combined taxi and private-hire-vehicle (PHV) fleet of more than 2,500 vehicles, and is accretive on a net income basis to Grab’s business. The acquisition includes Trans-cab’s taxi and car rental business, maintenance workshop, and fuel pump operations. 

“Consumer behaviours have shifted and we’ve recognized for some time the need to digitise the business and ensure our taxi drivers can continue to be competitive. We are confident this deal protects their future,” said Jasmine Tan, General Manager, Trans-cab. “Grab’s industry-leading tech will help our taxi drivers drive more productively and safely while serving their passengers better. We know that Grab cares deeply about their driver-partners, just as we do. We are entering this deal with full assurance that Grab will do their best to safeguard the livelihoods of our taxi drivers.”

“Mr. Teo’s story is truly inspiring. He built multiple successful businesses from humble beginnings and we’re incredibly proud to continue part of his legacy. Trans-cab is a very well-run taxi company and there is a lot that we can learn from Mr. Teo and the Trans-cab team. We look forward to welcoming the Trans-cab fleet and team into ours,” said Yee Wee Tang, Managing Director, Grab Singapore. “We see this as a strategic match with win-win-win outcomes for all. By boosting the number of drivers on our platform and helping them to operate more efficiently, we improve how quickly and reliably we find a ride for our passengers, whenever they need one.”

“Trans-cab is very close to my heart, and our taxi drivers are like family. Together with them, we grew Trans-cab from just a small fleet of 50 taxis two decades ago, to become Singapore’s second largest taxi company at one point. As we consider their future and what is best for them, I feel assured that with Grab, we have found the right partner to hand over Trans-cab to, who will do what is best for the drivers and the business,” said Mr. Teo Kiang Ang, Founder and Chairman of Trans-cab.

Grab technology to improve driving experience for Trans-cab drivers

Grab plans to launch an enhanced Grab Driver application that will be integrated with the Mobile Display Units in Trans-cab taxis. The app will enable Trans-cab taxi drivers to manage their earnings and receive bookings from the Grab platform as well as Trans-cab’s existing call centre, all through a single platform. With Grab’s allocation technology, Trans-cab drivers will be assigned bookings in a highly efficient and intelligent way, maximising their productivity so they can earn more. 

Grab also plans to explore combining software with vehicle hardware to further enhance the driving experience. For example, Grab is exploring a pilot to place large displays in-vehicle where drivers can manage all jobs including street hail through one interface, with additional features like navigation that drivers can choose to use. Additionally, Grab plans to use tech to improve the taxi-sharing experience, which is currently done manually between taxi drivers on an ad-hoc basis.

Trans-cab drivers that join the Grab platform will also receive benefits offered to all Grab driver-partners, including free coverage through Grab’s Personal Accident Insurance whenever they are online on the Grab platform, as well as access to GrabAcademy, where they can pick up skills from a wide range of free courses from data analytics to supply chain management and digital marketing. Driver-partners can also participate in Grab’s loyalty programs for additional rewards.

Acquisition to help Grab grow driver base to make it easier for passengers to find a ride

Singapore has faced an industry-wide driver supply crunch since the pandemic, resulting in higher fares as prices surge due to demand and supply imbalance.

Grab has worked on a number of initiatives to improve driver supply, whether by streamlining its onboarding process for new driver-partners, or by optimising its current driver-partner pool through tech. Acquiring Trans-cab’s taxi and car rental business will give Grab a larger base of driver-partners, benefiting passengers with more reliable allocation, especially during peak hours.

GrabRentals, the private-hire car rental arm of Grab, is also expected to benefit from greater operational efficiency and reduced costs by tapping into Trans-cab’s experience and expertise in fleet support through its maintenance workshop. A larger fleet size will also allow GrabRentals to derive savings from scale in areas like auto insurance premiums and procurement of parts. 

The board of directors of Grab and Trans-cab have approved the transaction. The transaction is currently expected to close in the fourth quarter of 2023, subject to regulatory approvals and other customary closing conditions.