SINGAPORE: Taxi operator ComfortDelGro and Uber announced on Friday (Dec 8) that they have entered into a strategic agreement to form a joint venture.
Under the agreement, which is subject to regulatory approval, ComfortDelGro will acquire a 51 per cent stake in Uber’s wholly-owned car rental subsidiary in Singapore, Lion City Holdings, the two parties said in a joint media release.
The latter, in turn, operates Lion City Rentals (LCR) which has a fleet of about 14,000 vehicles. Uber will retain the remaining 49 per cent.
Valued at about S$642 million, with a cash consideration of S$295 million, it ranks as ComfortDelGro’s single largest deal to-date.
The transaction is expected to result in increased demand for both private hire and taxi drivers as well as increased choice, shorter waiting times, and greater reliability for consumers, the release said.
The two companies are also finalising additional partnership opportunities and will make further announcements in the upcoming months.
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