Grab Tried to Disrupt Taxis. It Now Wants to Save Them

And the Singapore authorities hope the ride-hailing giant's new venture will reinvigorate the industry.

- Li Jianggan

Foiled once in its attempt to enter the taxi space two years ago, Grab has now succeeded with GrabCab, its new cab service in Singapore. The move follows the ride-hailing platform receiving a Street-Hail Service Operator Licence in April.

It marks a strategic turn for Grab. After years of operating as an asset-light platform, Grab is now investing in a company-owned taxi fleet, embracing a traditional model it once sought to disrupt.

It also reflects a shift in public policy. Grab's earlier bid to buy Trans-Cab, one of Singapore's largest fleets, was blocked by the Competition and Consumer Commission of Singapore over concerns of market concentration.

This time, the Land Transport Authority gave the green light, likely motivated by a new policy imperative: Singapore needs more point-to-point transport options—and acquiring an old fleet wasn't the solution. Acting Transport Minister Jeffrey Siow recently suggested that private-hire vehicles could be prioritised over privately owned cars in future certificate of entitlement (COE) allocation, with 20,000 more added to the market over the next few years.

The authorities likely believe that growing the taxi pool through a new fleet and new brand rather than absorbing an old one can reinvigorate the industry, attract more drivers and inject fresh thinking into a sector long due for modernisation.

TECH HASN'T RESOLVED HIGH PRICES

This policy shift prompts a bigger question: Wasn't ride-hailing supposed to fix the cab crunch? Apps like Grab and Uber promised better availability, especially during peak hours and downpours. More apps—Gojek, Tada, Ryde and Zig, to name a few—should mean more choices.