Grab Buys Singapore's Third Largest Taxi Operator For Undisclosed Sum

Grab Holdings Inc's GRAB private-hire car rental arm Grab Rentals Pte. Ltd. inked a deal to acquire Trans-cab Holdings Ltd., Singapore's third largest taxi operator, for an undisclosed amount.

Trans-cab has a combined taxi and private-hire-vehicle (PHV) fleet of over 2,500 vehicles and is accretive to Grab's business on a net income basis.

With the acquisition, Grab will attain Trans-cab's taxi and car rental business, maintenance workshop, and fuel pump operations.

The buyout will aid Grab in achieving a vast base of driver-partners, helping passengers with more reliable allocation, mainly during peak hours.

GrabRentals expects the acquisition to drive operational efficiency gain, reduce costs, and derive savings from scale in areas like auto insurance premiums and parts procurement. 

Post-acquisition, Grab will launch an enhanced Grab Driver application and integrate it with the Mobile Display Units in Trans-cab taxis.

The transaction is expected to close in Q4 2023, subject to regulatory approvals and other customary closing conditions. 

In May, Grab reported first-quarter FY23 revenue growth of 130% year-on-year (139% Y/Y on a constant currency basis) to $525 million, beating the consensus of $490.1 million. EPS loss of $(0.06) is in line with the consensus.

Also Read: Grab To Layoff 1,000 Staff, Aims To Save Cost and Enable Restructuring

Price Action: GRAB shares are trading higher by 0.57% at $3.53 premarket on the last check Thursday.