According to a media article from Straits Times, GrabCab, a subsidiary of Grab’s rental arm GrabRentals, has announced plans to commence operations in July 2025 with an initial fleet of 40 Toyota Prius vehicles.
GrabCab
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Importantly, the company stated it will not recruit drivers from existing taxi operators, instead targeting inactive drivers with valid licences as well as new entrants to the industry.
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Our views
Given the strong response from prospective drivers, if sustained, we believe Grab should be able to meet the minimum fleet size requirement of 800 cabs within three years, as stipulated under its taxi licence application. Moreover, its stated focus on attracting new and inactive drivers—rather than poaching from existing operators— should help ease concerns about heightened and potentially irrational competition in the taxi market. This is further supported by GrabCab’s rental and fare rates, which remain largely in line with industry peers, implying that there is little incentive for existing drivers to switch platforms.
By aiming to grow the overall pool of taxi drivers, Grab may also help reposition taxi driving as a viable and attractive profession, thereby contributing to a broader recovery in the sector. In doing so, this could ultimately support industry growth and benefit incumbents such as ComfortDelGro.
Maintain BUY
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
