Grab’s newest venture into the taxi sector, GrabCab, is set to launch in Singapore this July with an initial fleet of 40 hybrid vehicles, marking the ride-hailing giant’s official entry into the traditional street-hail market. Rather than competing directly with existing taxi companies for drivers, GrabCab is targeting a largely untapped pool: new and inactive Taxi Driver’s Vocational Licence (TDVL) holders.
The company, a subsidiary of Grab Rentals and sister to GrabCar, announced on Wednesday that driver recruitment efforts have already garnered interest from between 700 and 800 individuals. Of these, approximately 400 to 500 drivers are currently being shortlisted based on their possession of a valid TDVL.
GrabCab is not pursuing drivers from rival firms, said Mr Victor Sim, Head of GrabCab and GrabRentals. “There’s a very big pool of drivers that we believe we want to reactivate, that we can reactivate with our benefits and offerings … that’s a big focus for us,” he stated. The company will begin appointment scheduling for pre-registered drivers from 5 June, with open registration commencing on 9 June.
This move follows GrabCab’s approval as Singapore’s sixth licensed taxi operator, as announced by the Land Transport Authority (LTA) in April. The entrance of GrabCab—alongside established names such as CityCab, CDG, Prime, Strides, and Trans-cab—is expected to broaden options for both drivers and commuters, thereby bolstering the supply of taxis.
At launch, GrabCab will operate a fully green fleet comprised exclusively of low- and zero-emission hybrid Toyota Prius cars in a distinctive dark green livery. In line with regulatory standards, each vehicle will be equipped with a Mobile Data Terminal (MDT), commonly known as a taxi meter, showing fares and driver details. The Grab app will integrate seamlessly with the MDT via a QR code scan at the start of each shift, syncing trip data across both systems and the taxi’s rooftop indicator.
Drivers will have the flexibility to toggle between street-hail and ride-hail assignments through the Grab app. From the commuter’s perspective, fares will remain consistent with current market rates. The starting fare will be S$4.60 for standard 4-seaters, and S$4.80 for both 4-seater electric vehicles and 6-seater cars. Fare increments will follow a structure of S$0.26 every 400m up to 10km, and every 350m thereafter, along with 45-second waiting charges.
Although GrabCab has been granted a three-year grace period to scale its operations to a minimum of 800 taxis, Mr Sim confirmed that the company does not intend to wait until the final year to reach that benchmark. “We want to scale up corresponding to driver demand … we will do it sustainably,” he said.
Additional driver-oriented features include a relief matching system within the Grab app to ease the process of finding substitute drivers during shift changes.
Among the range of benefits GrabCab drivers can expect is a safe driving bonus of S$1,000 awarded annually for those with no at-fault accidents. A performance-based “GrabStreak” incentive will reward drivers with an additional 1 per cent bonus on monthly fares for completing between 500 to 700 trips. Fuel discounts will also be available—up to 40 per cent at Caltex stations and up to 25 per cent at electric charging partners including SP, Charge+, Volt, and Shell.
Medical leave entitlements include 14 days for the first 100 drivers and up to S$500 in medical credits, with extended medical and hospitalisation coverage also in place. Drivers will benefit from the ability to cash out fares instantly via the app. Rental fees for vehicles will start competitively at S$117 per day, aligning with rates across the sector.
Furthermore, the first 100 drivers to commit will receive welcome bonuses of S$1,888 for a 12-month term or S$3,888 for a 36-month term. GrabCab is also covering up to S$400 in TDVL application costs, which includes training, application, and medical examination expenses.
Responding to industry speculation that GrabCab could disrupt the existing operator ecosystem, Mr Sim reiterated that the company’s intent is not to poach drivers but to address a national supply shortage. “If the driver is already driving with another taxi company, and he comes to us … we are not going to turn him away,” he said. “But at the end of the day, it’s back to our acquisition plan—our focus is on new TDVL holders and TDVL holders that have gone dormant.”
He added that ride-hailing demand is projected to grow significantly in the coming years, creating a need for more consistent and reliable transport options. “When you think about taxis, you think of a sunset industry … so it seems counterintuitive for Grab to launch a taxi business,” Mr Sim said. However, he emphasised that taxis remain relevant, particularly during high-demand periods like post-concert surges, where Grab’s current platform struggles to ensure consistent supply.
New regulatory measures introduced earlier this year are also expected to level the competitive playing field between ride-hail and taxi operators. These include allowances for taxi companies to convert used vehicles into taxis, provided they are less than five years old.
Importantly, GrabCab’s launch does not signal a shift in focus away from other taxi partnerships within the Grab ecosystem. Mr Sim confirmed that the platform will continue to support bookings with other taxi companies and has no intention of prioritising GrabCab rides over existing partners.
“Our aim here is to grow the pie, not to split the pie, or take some away from (other operators),” he concluded.
-CNA
