ComfortDelGro and Uber enter joint venture deal for $642m
CDG will hold 51% of Uber's 14,000-strong fleet operator.
ComforDelGro Corporation Limited (CDG) and Uber Technologies formed a joint venture (JV) in a strategic agreement.
According to a press release, CDG will acquire a 51% stake in Uber’s wholly-owned car rental subsidiary in Singapore, Lion City Holdings Pte Ltd. Uber will retain 49%.
Lion City Holdings operates Lion City Rentals (LCR) with a 14,000-strong fleet.
Valued at about $642m, with a cash consideration of $295m, it ranks as CDG’s single largest deal to-date.
Upon completion of the transaction, LCR will be able to benefit from CDG's fleet management and operations.
CDG's taxi drivers will also be able to receive ride requests on the Uber driver app, thereby increasing their potential earnings while providing users of the Uber app an opportunity to directly book a CDG taxi.
"The two companies are finalising additional partnership opportunities and will make further announcements in the upcoming months," CDG said.
The company added that the move will establish a multi-dimensional, personalised mobility operator, encompassing both taxi and private hire vehicles (PHVs).