SMRT in talks to sell taxi business to Grab

Reliefdriver4u SG

Sorry to open new thread, this is alarming

But then again, someone's prediction a few years ago just came true - SMRT should just concentrate on their MRT business just as their company's name suggests

bowah SG

This one nothing new or alarming lah, when I told you all Grab is under temasek and Softbank japan, you all said I siao, when SMRT when into hourly renting, we already know what is coming, when Softbank group son, the billionaire decided to be the to come to Singapore and live here after facebook second founder, another billionaire told him that Singapore is good. You should jolly well know that Grab will be king of the road.

Reliefdriver4u SG

Softbank ?

Anthony Tan this time huat leow lor

better than his grandfather sell cars ...

Reliefdriver4u SG

Association with japan ... think it runs in the family

bowah SG

Softbank is Japan private telecom, like our singtel, so you can imaging how rich it is, it even got stake in Thailand, Philippines, and now helping mynmar to set up their IT infrastructure.

gekpohboy SG

Taxi Drivers, don't worry. You won't lose your job. SMRT's condition for the deal is that all of its Taxi Drivers must get a job at Grab, otherwise SMRT won't sell their taxi business to Grab.

I'm more concerned about the taxi fares. Hopefully, the increase in size would enable Grab to reap economies of scale and lower taxi fares, and not motivate Grab to take advantage of its size to increase taxi fares.

gekpohboy SG

Sorry to open new thread, this is alarming

But then again, someone's prediction a few years ago just came true - SMRT should just concentrate on their MRT business just as their company's name suggests

Actually, SMRT has a chance in the public bus industry. Now that SBS Transit has won the Bus Contracting Model - Seletar package, there's a good chance that SMRT may win the next package, or subsequent packages. SMRT should hold onto its bus business. It will give them something to fall back upon, in case they lose any MRT line.

shrimpvit SG

Driver will still be driver.. no change lo..

Smrt only request for their staff ..we partners only needs to cont. Pay rental

FireIce SG

SMRT is in talks to sell its taxi business to private-hire operator Grab.

If successful, the deal will see SMRT, the third largest cab operator with a fleet of 3,400 taxis, exiting the business it has been in for 27 years.

The proposal is also for SMRT to have a stake in Grab - a Malaysian start-up that is seen to be a keen rival of Uber - and at least one seat on its board of directors.

The Straits Times understands however, that the proposed deal has hit a bump over the jobs of SMRT Taxis workers.

SMRT, fully owned by the government's Temasek Holdings, wants the buyer to ensure all affected workers retain their jobs. But Grab it seems is not keen to take on more headcount as it has its own staff.

"Because of this, the sale is nowhere close to a deal," a source familiar with the talks said.

SMRT is reviewing its businesses since Temasek became its sole owner and delisted it last November.

It is understood the government investment giant wants SMRT to double up its focus on the rail business, with a view to make the MRT and LRT lines it operates far more reliable than they have been in recent years.

The taxi sale, if successful, could signal SMRT's disposal of other less substantial businesses with low margins - such as buses.

Its smallish footprint in the bus sector grew even smaller when it lost the Bulim and Selatar route packages to Tower Transit and SBS Transit respectively.

SMRT had also wanted to start a mobility business based on autonomous road-going pods. But that too, has been shelved because of Temasek's focus to get the rail business fully back on track.

Grab, which has been around since 2012, has more than 780,000 drivers across South-east Asia. To date, Grab is available in seven South-east Asian countries: Indonesia, the Philippines, Malaysia, Vietnam, Thailand, Singapore and most recently, Myanmar.

liewsc SG

Why would GRAB want to take over taxi business? So far till now it had the competitive advantages as an IT app company providing booking services to phv and taxi only, and not a transportation services provider so it does not fall under any LTA rules and regulations. Taking over taxi business means it'll be a game changer for GRAB with more liabilities, even phv the car also not directly under GRAB.

I do agree SMRT should just concentrate on MRT.

bowah SG

You think they want to take tax business??? they dun even want SMRT staffs not to mention the taxis.

In 2013, grab and uber started, they promised this city, in a years time, we will all be using apps, but now is 2017, and taxi population only reduce the most 1000, est from 27000 to now 26000. And taxi drivers are still going strong, although some have thrown keys and move on, so are Uber and Grab drivers throwing key at apps rental companies and coming into taxi driving.

So, do you think Grab and Uber is successful, did they uphold their promises, motto of taking over the market??? The answer is NO.

And now, as the supply of cars and taxis is almost full or overly supplied that end up taxis long Q at taxi stand, Phv drivers parking along road, shopping, ap waiting for calls, and still Uber and Grab are chasing for drivers to suck more in, do you think they are able to sustain with taxis remaining strong and unwavering?

The answer again is No.

So, what do you think grab will do??? if I cannot beat you down, I might as well eat you, and that is why grab will do, killing off Taxis by buying over them, but not running it as taxi companies, but as grabtaxis or any other initialves. This will kill taxis faster, just buy over their shares, and off goes SMRT of 3400 taxis, that will reduce the taxi from 26,000 to 22600 in just a few months.

FireIce SG

oredi 2 legs in liao, might as well

vicamour SG

SMRT has longed to exit the bus operations years ago. It is not surprising and in fact better for SMRT to sell its loss making operations like taxis and buses and put their primary focus in improving the rail operations instead.

With the implementation of bus contracting model, it will be better for other operators to take over SMRT bus services, providing better bus services while better managed without being in the red all the time. And SMRT can fully committed it's resources to improve rail operations. It's a win win situation for both bus and rail system as a whole.

It is also more logical for SMRT too if it wants to operate long term without continuing holding on loss making operations. Looking at the reasons on why wants to give up its taxi business, it's a matter of time they sell the cab and bus business, since improving rail operations and profitability is more important to them in the long-term.

peterpan212 SG

You think they want to take tax business??? they dun even want SMRT staffs not to mention the taxis.

So, do you think Grab and Uber is successful, did they uphold their promises, motto of taking over the market??? The answer is NO.

The answer again is No.

Buying a business n kill off. What do they gain? Too rich is it?

peterpan212 SG

Taxi Drivers, don't worry. You won't lose your job. SMRT's condition for the deal is that all of its Taxi Drivers must get a job at Grab, otherwise SMRT won't sell their taxi business to Grab.

Td pay taxi rental got job. No pay rental no job. Td no pay taxi rental, taxi company where to get revenue? Of course they sure got job for u. It is whether u want or not. What is there to worry?

liewsc SG

Don't think GRAB can simply buy over the taxi business and then scrap off like that, even using their app taxi is still taxi and also all the admin staff etc retrench? This is the worst way to kill competitor and gov will not allow it.

Reliefdriver4u SG

Now Ah Teo also want to sell ...

bowah SG

Grab is a tech coy, not taxi coy, in competitive industrial, the big fish will eat the smaller fish first, then become bigger, then will go find bigger fish to eat until they become the biggest.

Grab will not go an run a taxi coy, which to them, is an old and out of date industrial, if I can kill off 3,400 taxis and covert them into car for drivers to rent and use my apps, why I need to do taxi business which is lan pa pa lan.

And furthermore, the selling came to a standstill is because GRAB put it upfront that THEY DO NOT WISH TO EMPLOY THE SMRT STAFFs. Meaning, about few hundreds of SMRT taxi staff will hv to go, including their servicemen and repair centres..from director to cleaner…all gone. This is the cutting point to show you all that GRAB is a tech coy, not a taxi Coy, and that they will kill off SMRT taxis for good.

bowah SG

Buying a business n kill off. What do they gain? Too rich is it?

Aiyo, you do business or not, if I cannot compete with you or that you are blocking my business, if I got $$, why not sit down and we discuss take over, I paid you, you happy become rich and offload all yr work, I take over, no more competition, or lesser, in the market, you see many companies are doing this, big fish eat small fish, and it is also an economic of scale to let one run the show than so many doing it.

peterpan212 SG

Singapore taxi business is a sunset business.
Phv is the alternate option with lower cost to operate. Buy taxi business, what do u gain? Grab cannot compete n smrt taxi is blocking grab business? U must be dreaming.
Big fish eat small fish is when the small company got potential to become a threat. Buy over n kill them off.
Where is the threat from smrt taxi? The threat is getting smaller as each day pass.