Grab enters Singapore taxi market with 10-year license

Grab Holdings, known as the largest ride-hailing and food delivery company in Southeast Asia, has officially ventured into the taxi industry in Singapore following the acquisition of a 10-year license from the Land Transportation Authority (LTA). This milestone follows a significant period during which the traditional taxi fleet in Singapore has been shrinking drastically, dropping from nearly 29,000 vehicles in 2014 to fewer than 13,000 by early 2025. Grab's entry into the market reintroduces competition in a sector that has seen limited options for consumers and has been heavily influenced by the rise of ride-hailing apps over the past decade. In this competitive landscape, Grab aims to improve ride availability for consumers, particularly in peak hours and late nights, alongside addressing an increased demand for point-to-point transportation services. The company’s strategy is to complement its existing fleet of private hire vehicles while enhancing consumer choice in Singapore's transport sector. Under the stipulations of the LTA permit, the new GrabCab service is mandated to maintain a minimum fleet of 800 taxis after three years, emphasizing Grab's commitment to addressing the needs of the market. Moreover, GrabCab plans to operate with a focus on sustainability, with intentions to utilize low-emission hybrid cars and electric vehicles. This is part of a broader trend towards eco-friendly transport solutions in urban areas. The introduction of GrabCab into Singapore's taxi landscape poses a reconfiguration of available transportation options for both drivers and commuters, potentially leading to an increase in taxi supply that could alleviate pressure during high-demand periods. The timing of Grab's taxi service launch comes after a decision to cancel a proposed acquisition of the taxi operator TransCab for S$100 million ($75 million), indicating a strategic shift in how the company approaches the taxi segment. By entering the street-hail sector, Grab not only revitalizes competition among taxi operators but also paves the way for advancements in ride-hailing services. The LTA has welcomed this development, suggesting it will augment the service levels provided to commuters in Singapore, offering them more diverse choices in transportation at a time of increasing demand for flexible transit options."