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Singapore's ComfortDelGro buying majority stake in Uber unit for $218 million


(Reuters) - Singapore's Corp said on Friday it is buying 51 percent stake in private hire vehicle fleet owner from Uber Technologies' unit Mieten B.V. for S$295 million ($217.99 million) in cash, in bid to tackle local rival Grab.

owns Rental, which runs fleet of 14,000 vehicles.

The island-state's biggest taxi operator said in statement that the deal would create the opportunity for its drivers to receive ride requests on the Uber driver application, while letting users of the Uber application book taxi directly.

The deal, which will fund using existing resources, comes to fruition after the company disclosed in August it was in exclusive talks with Uber for potential tie-up that was seen as move that could help Uber compete with the dominant Singaporean ride-hailing firm Grab.

The announcement came after trading hours on Friday, with the company's shares ending the day 1.6 percent lower while the overall market closed over 1 percent higher.

($1 = 1.3533 dollars)

(Reporting By Rushil Dutta in Bengaluru; Editing by Muralikumar Anantharaman and Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 08 2017. 16:31 IST