ComfortDelGro-Uber tie-up suggests more consolidation

LAST week, taxi giant ComfortDelGro confirmed its highly-speculated alliance with San Francisco ridehailing startup Uber. This is a bold, once-unimaginable development between a transport incumbent and disruptor - which only points to further consolidation in the sector and more benefits for consumers.

ComfortDelGro said last Friday that it is taking a majority 51 per cent stake in Lion City Holdings, Uber's rental car business in Singapore. Valued at about S$642 million, the deal will put ComfortDelGro's taxis and Lion City's private-hire cars under a centralised fleet management system that will handle the despatch of vehicles to customers.

It is not the first time that a taxi operator here has joined forces with a ridehailing platform. Singapore's other four taxi operators, namely Trans-Cab, SMRT, Premier and Prime, have partnered Singapore-based ridehailing platform Grab.