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Ride-Hailing Giant Grab Expands with New Taxi Fleet

 


Grab has officially received a street-hail operator licence, marking its entry into Singapore’s taxi industry as the sixth licensed taxi operator. The licence was awarded to its subsidiary, GrabCab, and will take effect on April 9, 2025, for a duration of 10 years. The Land Transport Authority (LTA) announced this development on April 2, 2025, highlighting that the move will offer more options for drivers and passengers while expanding the availability of taxis.

Under the terms of the licence, GrabCab is required to progressively grow its fleet to at least 800 taxis within the first three years. LTA emphasized that GrabCab must comply with all safety and operational regulations, ensuring that its vehicles meet specific standards. These include having a distinctive livery and a prominent roof-top sign for easy identification by passengers looking for street-hail taxis. Additionally, the taxis must have sufficient boot space to accommodate a folded wheelchair or luggage.

GrabCab’s taxi fares will follow the same fare structure as other street-hail operators. Pricing details must be clearly displayed in all vehicles to maintain transparency. LTA also stated that GrabCab's partnership agreements with drivers must remain non-exclusive, meaning that drivers should have the flexibility to operate on multiple platforms.

A spokesperson from Grab stated that the licence will allow the company to introduce a taxi fleet that complements its private-hire car services. The company believes this will enhance ride availability, especially during peak hours, late nights, and in areas where only taxis have better accessibility. The company is also planning to launch a fleet of environmentally friendly hybrid and electric vehicles.

This is not Grab’s first attempt to enter the taxi market. In 2023, it attempted to acquire Trans-Cab, one of Singapore’s existing taxi operators. However, the deal was called off in 2024 after the Competition and Consumer Commission of Singapore determined that the acquisition would significantly reduce competition in the ride-hailing sector.

With GrabCab’s entry, Singapore’s taxi industry will now have six major players. The five existing operators are Comfort, CityCab, Trans-Cab, Strides Premier, and Prime. The total number of taxis in Singapore is currently around 13,000.

Comfort, owned by ComfortDelGro Taxi, has the largest fleet with 6,257 taxis. CityCab, also under ComfortDelGro, operates 2,063 taxis. Trans-Cab has a fleet of 2,077 taxis, while Strides Premier, which was formed through a merger of Strides Taxi and Premier Taxi in 2023, runs 2,044 taxis. Prime Taxi, the smallest operator, has 545 taxis, including a number of limousine taxis.

LTA believes that GrabCab’s entry will increase competition and provide commuters with more transport options. The authority will monitor GrabCab’s operations to ensure compliance with regulations and maintain fair competition in the industry.


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