It will no longer acquire a 51% stake in Lion City Holdings.
ComfortDelGro agreed to dissolve its strategic agreement with Uber Technologies to acquire a 51% stake in the latter’s wholly-owned car rental subsidiary Lion City Holdings.
The application of the proposed joint venture to the Competition and Consumer Commission of Singapore (CCCS) will also be withdrawn, CDG said in a statement.
The move comes as Grab assumes control of Uber’s Southeast Asian operations and assets in eight countries including Malaysia, Indonesia, Thailand, the Philippines, Vietnam and Myanmar including the ride-hailing giant’s food delivery platform UberEats.
Also read: Lion City Rentals drivers slam Grab takeover
“The operating environment has changed and the basis on which we were supposed to form the partnership is no longer relevant given that Uber has exited the region,” said CDG CEO Yang Ban Seng.
“Nevertheless, the Group still has every intention to go into the private hire vehicle space as we see the increasing convergence of private hire vehicles and taxis in the personalised mobility market,” he added.
The company is reportedly in talks with Indonesian ride-hailing firm Go-Jek for possible collaboration opportunities in a move that is seen to replace the partnership CDG sealed with Uber.
CDG’s profits fell 19.6% YoY to $66.3m in Q1 on the back of lower taxi revenue brought about by reductions to its taxi fleet. However, the company expects its company business to get back on track with the recent acquisition of new taxi businesses in Australia, China and UK.
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