Grab Holdings—the largest ride-hailing and food delivery company in Southeast Asia— will start its taxi service in Singapore after receiving a 10-year licence from the Land Transportation Authority.
Grab upended the taxi industry—whose fleet had dwindled from a peak population of almost 29,000 cars in 2014 to less than 13,000 currently—when it introduced its ride-hailing service a decade ago. Now, the Nasdaq-listed company said that its fleet of taxis, under GrabCab, will complement its private hire vehicles.
“This enables us to address unmet consumer demand and improve ride availability, particularly during peak hours, late nights and in areas only accessible by taxis,” Grab said in an emailed statement. “It also positions us to better serve the anticipated growth in point-to-point rides in the coming years, while catering to consumers who prefer street-hailing.”
Grab’s taxi licence comes nine months after it abandoned the proposed purchase of taxi operator TransCab. The deal was reported to be worth S$100 million ($75 million).
“GrabCab’s entry into the street-hail sector brings the total number of taxi operators to six, providing drivers and commuters with more choices and is expected to boost taxi supply,” according to the LTA,
Under the LTA permit, the company will be required to maintain a minimum fleet of 800 taxis after three years. GrabCab plans to use a fleet of low-emission hybrid cars and electric vehicles.
The Singapore-based company is entering the taxi industry amid increasing contributions from its ride-hailing and food delivery businesses. The group’s revenue rose 19% to $2.8 billion in 2024 from the previous year, while its annual net loss narrowed to $158 million from $485 million.
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