Singapore taxi operator acquires majority stake in Uber's car rental business

ComfortDelGro is forking out S$642 million for a fifty one % stake in Uber-subsidiary, Lion town Holdings, that runs a fleet of some fourteen,000 vehicles.

Singapore taxi operator ComfortDelGro has declared plans to accumulate a fifty one % stake in Uber's native letting business, Lion town Holdings.

Worth S$642 million (US$475.64 million), the deal would mark ComfortDelGro's biggest thus far and add another fourteen,000 vehicles to its rental fleet from Lion town Rentals, that was owned  by Lion town. Uber would retain the remaining forty nine % stake within the company.

If approved by authorities, the deal would alter Uber customers to book rides on ComfortDelGro's taxis via the former's ride-sharing app, aforementioned the Singapore company in a very statement Fri. It additional that new services from the new partnership were being planned and would be launched within the coming back months.

ComfortDelGro operated a fleet of sixteen,822 taxis branded underneath Comfort and CityCab, further as one,105 cars underneath its own self-drive rental and leasing service.

ComfortDelGro Chairman Lim Jit Poh said: "ComfortDelGro has been within the taxi business for near 5 decades and that we have seen the trade evolve considerably. Despite the various changes that have taken place, taxis have remained a relevant choice for individuals get round the town. The question several are asking is: for the way long?

"We ar assured that taxis are going to be around for a protracted time to return, however we tend to are aware that the individualised quality business could be a terribly completely different one currently. non-public rent vehicles, with the appearance of innovative apps like Uber, have modified the manner during which customers use public transportation and have created a additional economical use of existing resources," Lim said. "By operating along, we tend to feel that we are going to be ready to unleash lots of action which can profit customers and drivers alike."

ComfortDelGro corporate executive rule Ban Seng additional that the partnership would alter the corporate to faucet Uber's technology further as supply customers additional alternative and shorter expect their ride.

The Singapore company's native businesses encompassed bus, rail, and scrutiny and testing services, amongst others. It additionally had operations in China, the UK, Australia, Vietnam, and Asian country.

Uber last month was investment a spate of unauthorised transactions according by customers here, that it aforementioned weren't joined to the information security breach that had compromised fifty seven million accounts worldwide. These Singapore users had discovered charges created to their accounts and credit cards for rides they ne'er took, together with taken outside the country and purchased in foreign currencies.

In August, Uber additionally reportedly hired over one,000 vehicles that had been cited for a recall over hearth|a fireplace|a hearth} risk and when one such vehicle caught fire earlier this year on Singapore roads.