ComfortDelGro has not made any specific commitments but could potentially bring its 16,000 taxi fleet to Uber’s platform

Ride-hailing titan Uber is in talks with major Singapore cab operator ComfortDelGro (CDG) to form a “potential strategic alliance,” according to an official CDG press release.

CDG did not make any commitments but said that the collaboration may include “management of fleet vehicles and booking software solutions”. CDG would also potentially integrate its fleet of 16,000 taxis into Uber’s platform.

“The company believes that the potential strategic alliance will strengthen the company’s position as a major mobility service provider in Singapore,” said CDG. It, however, reiterated that the talks are still progressing and may not lead to a definitive agreement.

This development comes at a time when taxi ridership is at its all-time low and the number of unhired taxis continue to drastically increase, owing to intense competition from private ride-sharing platforms Uber and Grab — both of which have billions of dollars in reserve.

Also Read: For James Deakin, the argument for ridesharing in the Philippines is about Uber and Grab vs. private car ownership

If Uber successfully inks the deal with CDG, it will give them a leg-up against its chief rival Grab without having to spend another dime on new cars. Uber typically does not purchase its own fleet of private hire cars; but in Singapore, it set up its own rental unit called Lion City Rental (LCR). LCR courted controversy when it was discovered to be leasing out defective fire-prone Honda Vezels.

Uber Singapore issued a press statement recently claiming that all Honda Vezels had been fixed.

But I digress, because it is CDG that is receiving the better end of the bargain; it is CDG that needs to play catch up; the money required for a new fleet of cars (in Singapore) is spare change for Uber.

I wrote previously about how CDG and other traditional taxi companies are digging themselves into a deeper pit by calling for restrictions on ride-hailing services. So if this deal goes through, this would be a step in the right direction.

—

Image Credit: libertos / 123RF Stock Photo

The post Uber in talks with Singapore cab operator ComfortDelGro to form “strategic alliance” appeared first on e27.