ComfortDelGro to buy $475m stake in Uber’s Singapore car rental company
Uber ComfortDelGro deal : ComfortDelGro Corporation has agreed to buy a stake of 51% in Lion City, a Singapore car rental company in a deal worth S$642 million ($474.6 million) according to the latest transport industry news.
Lion City is a wholly owned subsidiary of US-based ride hailing company Uber Technologies while ComfortDelGro is a Singapore-based land transport company.
The Uber ComfortDelGro deal will comprise a cash consideration of S$295 million ($218.15 million) and loans.
The Uber subsidiary, Lion City is the holdings company of Lion City Rentals (LCR) which boasts of a fleet of around 14,000 vehicles. Uber will retain a stake of 49% in the Singapore car rental company.
Lion City Rentals is expected to benefit from the world-class fleet management and operations of ComfortDelGro post transaction, which the latter says will be in the interest of both drivers and consumers.
ComfortDelGro has operations across seven countries with a global fleet of more than 43,500 vehicles.
Brooks Entwistle – Uber Chief Business Officer for Asia Pacific, commenting on the Uber ComfortDelGro deal, said: “This joint venture is a testament to the tremendous potential of ridesharing technology in this highly competitive local transportation market, and to our commitment to partnering for greater growth as we continue to build a sustainable global business.
“ComfortDelGro shares our vision for the future of urban mobility. This joint venture will allow ComfortDelGro and Uber to accelerate this shared vision of the future, powered by technology that unlocks the true potential of Singapore, for everyone, everywhere.”
The transaction will also provide an opportunity for the taxi drivers of ComfortDelGro to bag ride requests on the Uber driver app. This is expected to raise their potential earnings and at the same time gives customers an opportunity to directly book a ComfortDelGro taxi on their Uber app.
The Uber ComfortDelGro deal is anticipated to grow the demand for private hire and taxi drivers and also result in additional choice, reduced waiting times, and improved reliability for consumers.
Commenting on the Uber ComfortDelGro deal, Lim Jit Poh – ComfortDelGro Chairman, said: “We are confident that taxis will be around for a long time to come. But we are also aware that the personalised mobility business is a very different one now.
“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.”
The Uber ComfortDelGro deal will be subject to receipt of regulatory approval.
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