Trans-cab purchase signals grab for drivers and maybe profits

GRAB’S planned purchase of taxi operator Trans-cab could kick off more deals in South-east Asia’s point-to-point (P2P) transport market, as companies battle over a limited pool of drivers and contend with rising costs. For consumers, it raises concerns that fares might keep rising.

On Jul 20, Grab announced that its rentals unit is fully acquiring Trans-cab. The latter has a fleet of 2,200 taxis and 300 private-hire vehicles (PHVs), and owns a maintenance workshop and fuel pump operations.

Grab did not disclose the price tag, but The Straits Times reported it as being over S$100 million. The purchase, still subject to regulatory approval, is expected to close in the fourth quarter this year.