Grab awarded street-hail operator licence, set to become Singapore's sixth taxi company

Ride-hailing giant Grab has been awarded a street-hail operator licence, paving the way for it to become Singapore's sixth taxi operator.

- Esther Loi

The licence — awarded to GrabCab, a subsidiary of Grab's rental arm GrabRentals — will start on April 9 and is valid for 10 years, the Land Transport Authority (LTA) said on April 2.

Under the licence, GrabCab will have a grace period of three years to progressively expand its fleet to meet the minimum fleet size requirement of 800 taxis, noted LTA.

Grab did not disclose GrabCab's targeted fleet size when asked.

LTA said that GrabCab's entry into the street-hail industry will provide drivers and passengers with more options and is expected to boost the supply of taxis.

The authority added that GrabCab will need to comply with the conditions of its licence, including meeting LTA's safety standards and ensuring that partnership arrangements with drivers are non-exclusive in nature.

GrabCab must also ensure that its taxis are easily identifiable by street-hail customers, including having a prominent rooftop sign and a distinctive livery scheme.

Its vehicle models must be approved by LTA, and meet requirements such as having enough boot space to carry a folded wheelchair or luggage.

Its street-hail services must also follow the same taxi fare structure components as other street-hail operators and must prominently display them, so that passengers are informed of the applicable fares, said LTA.

Grab said the licence will give it the opportunity to introduce a taxi fleet to complement private-hire cars on its platform.