ComfortDelGro and Uber have ended their short-lived marriage. The two have agreed to dissolve the strategic agreement that they entered into last December.
As a result, ComfortDelGro will no longer be acquiring the 51% stake in Uber’s wholly-owned car rental subsidiary in Singapore, Lion City Holdings. Consequently, the application to the Competition and Consumer Commission of Singapore will be withdrawn.
ComfortDelGro managing director and group CEO, 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 exited 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.”
Brooks Entwistle, chief business officer, international added, "While short lived, this innovative partnership has already resulted in key insights that are informing exciting new strategies for both parties — with ComfortDelGro continuing to explore private hire vehicles, and Uber firmly committed to increasing taxi partnerships as one solution in our vision for a multi-modal mobility platform."
"I would like to thank both teams and ComfortDelGro’s leadership for their efforts in shaping the future of the industry, and look forward to seeing how our respective learnings change the way the world moves," he said.
In March this year, Grab acquired Uber’s Southeast Asia operations, integrating Uber’s ride-sharing and food delivery business in the region into its existing multi-modal transportation and fintech platform. News of Uber handing its Southeast Asia business to Grab first surfaced in February this year.
The acquisition saw Grab taking over Uber’s operations and assets in Singapore, Malaysia, Indonesia, the Philippines, Thailand, Myanmar, Cambodia and Vietnam. As part of the move, Uber will take a 27.5% stake in Grab and Uber’s CEO Dara Khosrowshahi will join Grab’s board.