26.8 C
Singapore
Tuesday, February 27, 2024
Ads

GRAB BUYS TRANSCAB, THE 3RD BIGGEST TAXI OPERATOR IN S’PORE, TO GROW DRIVER BASE

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.

Advertisements

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. 

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.

Advertisements

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.

Advertisements

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.

- Advertisement -
- Advertisement -
Latest News

MAN CUT TIES WITH HIS “PRINCESS SISTER” CAUSE SHE IS A GOLD DIGGER

My sister is 28. She has had a large dating history and oftentimes breaks up with these great men...
- Advertisement -