Uber’s subsidiary Lion City Holdings operates Lion City Rentals, which has a fleet of around 14,000 vehicles

SGX-listed land transportation company ComfortDelGro Corporation has signed a deal to acquire a 51 per cent stake in Uber Singapore’s wholly-owned car rental subsidiary, Lion City Holdings, for about S$295 million (US$218 million).

Uber will retain the remaining 49 percent.

Lion City Holdings is the operator of Lion City Rentals (LCR), which has a fleet of around 14,000 vehicles.

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As per a statement, this is 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.

Upon completion of the transaction, LCR will be able to benefit from ComfortDelGro’s fleet management and operations. It will also create a path for ComfortDelGro’s taxi drivers to receive ride requests on the Uber driver app, thereby increasing their potential earnings while providing users of the Uber app an opportunity to directly book a ComfortDelGro taxi.

The joint venture will also help the two companies leverage each other’s operational and technological excellence. The move will establish a multi-dimensional, personalised mobility operator, encompassing both taxi and private hire vehicles (PHVs), and providing a wide range of local transport options in an increasingly competitive environment.

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ComfortDelGro Chairman, Lim Jit Poh, said: “PHVs with the advent of innovative apps like Uber, have changed the way in which consumers use public transportation and have created a more efficient use of existing resources. By working together, we feel that we will be able to unleash a lot of synergy which will benefit consumers and drivers alike.”

ComfortDelGro CEO, Yang Ban Seng, added: “By working together, we will be able to benefit from each other’s strengths. Uber will benefit from our fleet maintenance and management capabilities while we will benefit from Uber’s world class technology. At the same time, consumers will have even more choice with either taxis or private hire vehicles, shorter waiting times and greater reliability. It’s a win-win situation.”

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