Singapore’s ride-hailing and meals supply firm Seize has signed an settlement for its automotive rental unit Seize Leases to accumulate Trans-cab, town state’s third largest taxi operator. 

The deal, Seize’s first native competitor acquisition, is predicted to shut within the fourth quarter of 2023 and contains “Trans-cab’s taxi and automotive rental enterprise, upkeep workshops and gasoline pump operations.” Based in 2003, Trans-cab began with a fleet of fifty taxis and tried to go public twice. It now operates a fleet of greater than 2,500 automobiles. 

The monetary phrases of the deal weren’t disclosed, however in line with a report by The Straits Instances, the acquisition measurement is estimated at round $75 million. 

The Nasdaq-listed ride-hailing large says the acquisition will permit Seize to supply a extra in depth base of drivers. Seize desires to deal with Singapore’s driver scarcity challenge, which resulted in rising fares on account of demand and provide imbalance. 

“By boosting the variety of drivers on our platform and serving to them to function extra effectively, we enhance how shortly and reliably we discover a experience for our passengers, each time they want one,” Yee Wee Tang, managing director of Seize Singapore, mentioned in an announcement. 

The acquisition comes only a month after the Southeast Asian supper app operator laid off greater than a thousand staff, or about 11% of its employees.

Trans-cab drivers will be a part of the Seize platform and obtain advantages offered to the present Seize drivers, together with free protection by means of Seize’s Private Accident Insurance coverage and entry to the GrabAcademy program, which helps the drivers study expertise, together with information analytics and digital advertising and marketing. Rewards by means of loyalty applications additionally shall be offered to the drivers. 

Seize plans to combine its driver utility into Trans-cab’s cell show items to digitize the enterprise. Seize’s know-how will allow Trans-cab taxi drivers to handle their earnings and obtain bookings from Seize’s platform and the prevailing name middle of Trans-cab. 

“Client behaviors have shifted and we’ve acknowledged for a while the necessity to digitize the enterprise and guarantee our taxi drivers can proceed to be aggressive,” Jasmin Tan, basic supervisor of Trans-cab, mentioned.  

Consolidation by way of mergers and acquisitions is on the rise within the tech trade as tight personal capital and a gradual preliminary public providing market as a result of financial downturn impacted by rising inflations and high-interest fee headwinds. 

In April, Singapore’s SMRT introduced its ride-hailing operator Strides Taxi would merge with Premier Taxis to deliver collectively a mixed fleet of about 2,500 taxis, turning into the nation’s second-largest taxi operator. ComfortDelgro has about 60% of the market share in Singapore, with a fleet of about 8,800 taxis.