Taxi giant ComfortDelGro announced on Friday (8th December) its intention to acquire a 51 percent stake in the Uber-owned rental fleet business, Lion City Rentals. This news come more than three months after a possible alliance with Uber was first announced, ending speculation about the nature of the deal.
In a statement, ComfortDelGro said the deal, which is subject to regulatory approval, is valued at about $642 million, with a cash consideration of $295 million. It ranks as ComfortDelGro's single largest deal to date, said the firm. Uber will retain the remaining 41 percent of the Lion City Rentals, which has a fleet of 14,000 vehicles.
"Upon completion of the transaction, Lion City Rentals will be able to benefit from ComfortDelGro's world-class fleet management and operations, which will be in the interest of drivers and consumers alike," said ComfortDelGro. ComfortDelGro added that taxi drivers will also be able to receive ride requests on the Uber driver app, thereby increasing their potential earnings and allowing customers the option of booking a ComfortDelGro taxi through the Uber app.
