ComfortDelGro buys taxis in Shenyang, invests in new Jilin repair shop

IN a 71.6 million yuan (S$15 million) move, ComfortDelGro Corporation is buying 217 taxi licences and vehicles from a Shenyang company to grow its fleet in the city by close to a fifth to 1,503 taxis.

ComfortDelGro will remain the largest taxi operator in Shenyang after the acquisition from Shenyang Tian Wen Taxi Co, ComfortDelGro said in an after-trading announcement.

Its Shenyang ComfortDelGro Taxi Co and CityCab (Shenyang) Co have been "experiencing fully hired out fleets for several years now", the company said.

The company is also investing in a new 5.3 million yuan, 2,200 sq m vehicle repair shop in Jilin city, where it is also the leading taxi operator. It will be used to service the Group's 729 Jilin taxi fleet as well as provide repair and maintenance services to third parties.

"In China, cities such as Shenyang have clear policies aimed at creating a level playing field for both the traditional taxi industry and the new private-hire industry ... Together with the strong regulatory environment, it gives us confidence to invest and expand our fleet. We believe that both taxis and private-hire vehicles have their roles to play in providing mobility services in the city," said ComfortDelGro managing director and group chief executive Yang Ban Seng.