After agreeing to acquire a 51 per cent stake in Uber just last Decemeber, ComfortDelGro has now announced that it has parted ways with the ride hailing company.
As such, the taxi operator will not longer have a share in Uber’s wholly-owned car rental subsidiary, Lion City Holdings Pte Ltd.
The ComfortDelGro-Uber deal was worth about $480 million (S$642 million), with a cash consideration of about $220 million, which made it the Singapore taxi company’s single largest deal so far.
Part of the deal included the introduction of UberFLASH which brought the concept of surge pricing to ComfortDelGro taxis. The feature has since been removed as the Uber app ceased to exist after May 7 in Singapore.
Managing director and Group CEO of ComfortDelGro, Mr Yang Ban Seng, explained the termination: “The operating environment has changed and the basis on which we were supposed to form the partnership is no longer relevant given that Uber has exited the region.”
Despite this, ComfortDelGro maintains it will continue with its foray into the private hire vehicle space, Mr Yang added.
“The Group still has every intention to go into the private hire vehicle space as we see the increasing convergence of private hire vehicles and taxis in the personalised mobility market.”