ComfortDelGro strikes deal to acquire 51% stake in Uber’s Lion City Holdings

ComfortDelGro

Singapore’s ComfortDelGro will soon be working with ride-hailing tech company Uber.

Under a strategic agreement between the two parties, ComfortDelGro will acquire a 51 per cent stake in Lion City Holdings, a car rental subsidiary of Uber Technologies in Singapore.

Lion City Holdings operates Lion City Rentals (LCR), which currently has a fleet of about 14,000 vehicles.

In a press statement on Friday (Dec 8), ComfortDelGro said the agreement is subject to regulatory approval.

Valued at about $642 million, with a cash consideration of $295 million, it will the Singapore taxi company’s single largest deal to-date.

The deal will allow ComfortDelGro’s taxi drivers to receive ride requests on Uber’s app.

“By leveraging each other’s strengths, the move will establish a multi-dimensional, personalised mobility operator, encompassing both taxi and private hire vehicles (PHVs), and providing a wide range of local transport options in an increasingly competitive environment,” a spokesperson for ComfortDelGro said.

Mr Lim Jit Poh, ComfortDelGro’s chairman, said that while taxis remained relevant in Singapore, the evolution of the transport industry has made the personalised mobility business very different from before.

“By working together, we feel that we will be able to unleash a lot of synergy which will benefit consumers and drivers alike,” he said of the collaboration.

National Taxi Association Adviser, Mr Ang Hin Kee, said: “With the agreement, I look forward to taxi drivers being able to have more jobs and consumers offered with more choices, and faster confirmation time of getting a taxi.”