SINGAPORE: The strategic agreement that ComfortDelGro and Uber had entered into late last year has been dissolved, the taxi operator announced in a news release on Friday (May 25).
ComfortDelGro will no longer be acquiring a 51 per cent stake in Uber's wholly-owned rental subsidiary in Singapore, Lion City Holdings, it said. The application submitted to the Competition and Consumer Commission of Singapore will be withdrawn as well.
AdvertisementThe move comes after Grab acquired Uber's Southeast Asia operations in March.
ComfortDelGro managing director and group CEO Mr Yang Ban Seng said: "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 existed the region.
"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."
The deal was previously valued at about S$642 million, with a cash consideration of S$295 million. It would have ranked as the company's single largest deal to date.
AdvertisementAdvertisementAs part of the deal, Uber Singapore had launched UberFLASH, which brought surge pricing to all ComfortDelGro taxis, in January. The service lasted until the Uber app was turned off on May 7 in Singapore.
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