Grab Stock Jumps 2% in Morning Trading

Tiger Newspress2023-07-20

Ride-hailing giant Grab is acquiring Trans-Cab, Singapore’s third largest taxi operator.

The purchase, for an undisclosed amount but understood to be around $100 million, includes some 2,200 taxis and more than 300 private-hire vehicles which Trans-Cab owns.

Grab stock jumps 2% in morning trading.

If concluded, Trans-Cab will be the first Singapore taxi company to be acquired by United States-listed Grab, which has been trying to buy a cab operator for several years now.

In 2017, Grab was in talks to buy SMRT’s fleet, but the deal fell through. In 2022, it started talks with Prime Taxi, the smallest cab operator here, but the deal did not proceed. In both cases, sources said the offers were “too small”.

Trans-Cab entered the taxi market 20 years ago when the Government liberalised the industry to increase competition. Within 10 years, it grew to become the second-largest taxi firm here, overtaking SMRT Taxis, which is owned by the rail operator.

But earlier this year, SMRT Taxis – which has since rebranded as Strides – bought Premier Taxis, and their combined fleet of about 2,500 vehicles now exceed Trans-Cab’s. ComfortDelGro remains Singapore’s largest taxi operator with around 8,800 taxis or just over 60 per cent of the market.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • JimmyChua
    2023-07-20
    JimmyChua
    Grab trans taxi
  • Sky Tgr
    2023-07-20
    Sky Tgr
    Told u all to grab it last time [LOL] 
Leave a comment
2
2