Grab set to become Singapore's sixth taxi operator

Ride-hailing giant Grab has been awarded a street-hail operator licence, paving the way for it to become Singapore's sixth taxi operator.

The licence - awarded to GrabCab, a subsidiary of Grab's rental arm GrabRentals - will start on April 9 and is valid for 10 years, the Land Transport Authority (LTA) said on April 2.

Under the licence, GrabCab will have a grace period of three years to progressively expand its fleet to meet the minimum fleet size requirement of 800 taxis, noted LTA.

LTA said that GrabCab's entry into the street-hail industry will provide drivers and passengers with more choices and is expected to boost the supply of taxis.

The authority added that GrabCab will need to comply with the conditions of its licence, including meeting LTA's safety standards and ensuring that partnership arrangements with drivers are non-exclusive in nature.

GrabCab must also ensure that its taxis are easily identifiable by street-hail customers, including having a prominent roof-top sign and a distinctive livery scheme.

Its vehicle models must be approved by LTA, and meet requirements such as having enough boot space to carry a folded wheelchair or luggage.

Its street-hail services must also follow the same taxi fare structure components as other street-hail operators and must prominently display them, so that passengers are informed of the applicable fares, said LTA.

Grab said the licence will give it the opportunity to introduce a taxi fleet to complement private-hire cars on its platform.

"This enables us to address unmet consumer demand and improve ride availability, particularly during peak hours, late nights and in areas accessible only by taxis," its spokesperson said in a statement.

"It also positions us to better serve the anticipated growth in point-to-point rides in the coming years, while catering to consumers who prefer street hailing."

Grab said it will launch in the coming months a GrabCab fleet featuring "popular low- and zero-emission hybrid and electric vehicles from leading manufacturers".

This is not the first time Grab is attempting to enter the taxi market.

Its bid in 2023 to buy taxi operator Trans-Cab was abandoned in 2024 after Singapore's competition watchdog said in a provisional ruling that the acquisition was likely to lead to a substantial reduction of competition in the ride-hailing market.

Grab's latest foray into the taxi industry will make it the sixth taxi company in Singapore, after Comfort, CityCab, Trans-Cab, Strides Premier and Prime.

The five taxi operators here operate a total of about 13,000 cabs.

Comfort, which is owned by ComfortDelGro Taxi, has 6,257 cabs, according to the latest taxi fleet figures published by LTA in January. It has been operating since 1970.

CityCab, also owned by ComfortDelGro Taxi, has a fleet of 2,063 taxis. It started operating in 1995.

Having operated in Singapore since 2003, Trans-Cab has a fleet of 2,077 taxis.

As a result of a merger between Strides Taxi and Premier Taxi in 2023, Strides Premier has a combined fleet of 2,044 taxis.

Prime Taxi, operated by diversified motor group Prime, is Singapore's smallest taxi operator with 545 cabs, including a sizeable number of limousine taxis. It started operating in 2007.