Grab Enters Singapore taxi industry with 10-year license

Grab Lockings, the largest ride and food delivery company in Southeast Asia, will start its taxi service in Singapore after obtaining a 10-year license from the Land Transport Authority.

Currently, the fleet in 2014 dropped from a peak population of nearly 29,000 cars to less than 13,000 now, looting the taxi industry – a ride-hailing service introduced a decade ago. Now, the Nasdaq-listed company says the cab fleet under Grabcab will supplement its private rental vehicles.

“This allows us to meet unmet consumer demand and improve ride availability, especially during peak hours, late nights and areas that can only be accessed by taxis,” Grab said in an emailed statement. “This also allows us to better serve the expected growth in peer-to-peer riding in the coming years while catering to consumers who like street cars.”

Grab's taxi license comes nine months after waived its proposed purchase of taxi operator TransCAB. The deal is reportedly worth S$100 million (USD 75 million).

“Grabcab's entry into the streetcar industry brings the total number of taxi operators to six, offering more options for drivers and commuters and is expected to increase taxi supply,” LTA said.

Under the LTA license, the company will be required to maintain a minimum fleet of 800 taxis in three years. GrabCab plans to use fleets of low-emission hybrid vehicles and electric vehicles.

The Singapore-based company is entering the taxi industry as it contributes to its ride and food delivery businesses. The group's revenue in 2024 increased by 19% from the previous year to $2.8 billion, while its annual net loss narrowed to $158 million from $485 million.