Grab Receives Street-Hail Operator Licence, Set to Become Singapore’s Sixth Taxi Operator From 9 April

By
Siti Hajar
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Ride-hailing giant Grab has been awarded a street-hail operator licence, positioning the company to become Singapore’s sixth taxi operator.

The Land Transport Authority (LTA) announced on 2 Apr 2025 that the licence will be granted to GrabCab, a subsidiary of Grab’s rental arm GrabRentals.

GrabCab’s Entry into Singapore’s Taxi Market

The new street-hail licence will begin on 9 Apr 2025 and remain valid for 10 years.

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Under the terms of the licence, GrabCab will have a three-year grace period to gradually expand its fleet to meet the minimum requirement of 800 taxis.

GrabCab must comply with several conditions as part of its licence.

The company’s taxis need to be easily identifiable by street-hail customers, featuring a prominent rooftop sign and a distinctive livery scheme.

The vehicle models must receive LTA approval and meet specific requirements, including having sufficient boot space to carry a folded wheelchair or luggage.

In terms of pricing, GrabCab’s street-hail services must follow the same taxi fare structure components as other street-hail operators. The fare details must be prominently displayed to inform passengers of the applicable rates.

LTA stated that GrabCab’s entry into the street-hail industry will offer drivers and passengers more choices and is expected to boost the supply of taxis in Singapore.

A Grab spokesperson said the licence gives the company “the opportunity to introduce a taxi fleet to complement private-hire cars on its platform.”

The spokesperson added that this will help “address unmet consumer demand and improve ride availability, particularly during peak hours, late nights and in areas accessible only by taxis.”

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Green Fleet Launch and Driver Incentives

Grab announced plans to launch in the coming months a GrabCab fleet featuring “popular low- and zero-emission hybrid and electric vehicles from leading manufacturers.” This green fleet will focus on eco-friendly transportation options.

To attract drivers, Grab will sponsor the course fees for a Taxi Driver’s Vocational Licence as well as six-month National Taxi Association membership fees for new members planning to join GrabCab.

Interested drivers can register their interest starting from 2 Apr 2025.

GrabCab will join five existing taxi operators in Singapore: Comfort, CityCab, Trans-Cab, Strides Premier, and Prime. Together, these five companies currently operate about 13,000 taxis across the island.

Comfort, owned by ComfortDelGro Taxi, has been operating since 1970 and maintains the largest fleet with 6,257 cabs according to LTA’s January figures. CityCab, also under ComfortDelGro Taxi’s ownership, began operations in 1995 and has 2,063 taxis.

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Trans-Cab, which has operated in Singapore since 2003, runs 2,077 taxis. Following a merger between Strides Taxi and Premier Taxi in 2023, Strides Premier now has a combined fleet of 2,044 taxis.

Prime Taxi, operated by diversified motor group Prime, started in 2007 and is Singapore’s smallest taxi operator with 545 cabs, including many limousine taxis.

This isn’t Grab’s first attempt to enter Singapore’s taxi market. In 2023, the company announced plans to acquire Trans-Cab, Singapore’s third-largest taxi operator at the time.

However, the deal was abandoned in 2024 after Singapore’s Competition and Consumer Commission found that the proposed acquisition might create barriers for rival platforms and raised concerns about potential higher prices for drivers and passengers.

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Siti Hajar