- It was announced that GrabCab, a subsidiary of domestic ride-hailing competitor Grab, has been awarded a licence to run street-hail services, making GrabCab the sixth taxi operator in Singapore. The license is expected to start on 9 April and would be valid for 10 years.
New taxi operator in Singapore
- - Read this at SGinvestors.io -
- Like current incumbent taxi operators, GrabCab must ensure that their taxis are easily identifiable by street-hail customers such as having a prominent rooftop sign and a distinctive livery scheme. GrabCab’s taxis should also have the same taxi fare structure components with its fare prominently displayed.
- GrabCab also stated that the group would sponsor the course fees for the Taxi Driver’s Vocational Licence (TDVL), along with six months’ worth of National Taxi Association membership fees for new taxi drivers planning to join the company.
Increased competition.
- - Read this at SGinvestors.io -
- With GrabCab’s upcoming entry into the already declining street-hail segment, we expect increased competition for the incumbents such as ComfortDelGro (SGX:C52) which has the current majority market share of around 65%.
Switching sides.
- Read more at SGinvestors.io.
