GrabCab, Singapore’s newest taxi operator, hits the roads with over 40 cabs to be rolled out in July

SINGAPORE – Singapore’s sixth and newest taxi operator GrabCab has hit the roads, with over 40 cabs to be rolled out in July, and more cabs expected in the next three years.

Its flag-down fare is $4.60 for a standard four-seater vehicle, while distance rates are 26 cents for every 400m under 10km, and 26 cents for every 350m after 10km. A fee of 26 cents will be charged for every 45 seconds of waiting.

Fares for taxis under ComfortDelGro, Trans-Cab, Strides Premier and Prime Taxi are comparable.

GrabCab was launched on July 2

with a flag-off ceremony at Grab’s headquarters in one-north.

The taxi operator, a subsidiary of Grab’s rental arm GrabRentals, announced its entry into the market on June 4, with 40 new fifth-generation electric hybrid Toyota Prius cars.

Under the terms of its street-hail operator licence, GrabCab has three years to progressively expand its fleet to meet the minimum fleet size requirement of 800 cabs.

The operator aims to achieve the target before the third year, said a Grab spokesperson.

Grab had said in June that it would add two more models to its fleet, including the electric hybrid Hyundai Kona from August and a fully electric vehicle “some time” in 2025. The Hyundai Kona will be up for rental from July 3.

Rental rates for a GrabCab vehicle start at $106.20 a day, and with incentives, the rate falls to $95.70 a day.

This is slightly lower than the $117 rental rate for a Toyota Prius under taxi giant ComfortDelGro, $109.80 for one under Prime Taxi, and $100 a day at Strides Premier.

Fourteen Toyota Prius cars were involved in the flag-off, and some 30 drivers with the new taxi operator attended the event.

Speaking at the flag-off ceremony, Grab’s group managing director of operations Yee Wee Tang said: “Ride-hailing apps work great for many commuters, but there are still groups like the older residents and overseas visitors who continue to need a street-hail service, and taxis fill the gap.

“At the same time, by bringing taxis and private-hire vehicles together on one platform, we’re strengthening the overall network to provide more reliable and accessible rides for commuters across Singapore.”

GrabCab also offers features such as a safe driving bonus, which rewards accident-free driving with up to $3,000 over three years, and a relief-matching system in the driver app that lets main drivers connect with relief drivers.

The operator said previously that it had received 700 to 800 registration applications from prospective drivers who expressed interest in renting a GrabCab vehicle. Of these, about 400 to 500 eligible applicants had been selected as part of the first pool of drivers.

When asked on July 2, Grab said it was unable to provide an update on sign-ups.

One of the fleet’s new drivers, Mr Kevin Heng, said he did not expect to join the taxi industry so soon.

The 45-year-old was a delivery rider for four years before joining GrabCab, but was initially undecided between driving a taxi and driving a private-hire vehicle.

Mr Heng eventually chose a taxi after doing his homework by reading forums, due to benefits such as flexibility for street-hail pickups. His father, who was a ComfortDelGro taxi driver for 15 years, also encouraged him to consider the taxi industry.

Mr Heng signed with GrabCab for one year to “try out” and for benefits such as leave and insurance coverage – drivers have accident coverage and up to 10 days of medical leave.

Fees for the course to get the taxi driver’s vocational licence are also fully funded by GrabCab.

“My friends all discouraged me and said driving a taxi is for old people,” Mr Heng said. “But I think this misconception must change.”

Mr Loh Fong Siong, 69, and his son Loh Jing Loong, 32, joined GrabCab as relief and main drivers, respectively, because of its benefits and lower rental.

Previously, the elder Mr Loh had worked as a main taxi driver under different operators over 35 years, while Mr Loh Jing Loong was his relief driver at Prime Taxi for two years.

“After one year, I will see whether I like the scheme, then (decide whether to) continue with it,” Mr Loh Jing Loong said.