ALSO READTop Singapore taxi firm ComfortDelgro in exclusive talks with Uber Singapore slings? Taking on Alibaba, Amazon launches Prime Now in the city state Ebix to acquire online travel exchange Via for USD 75 m Indian man jailed for robbery in Singapore Singapore Press Holdings to cut over 200 jobs by year-end
(Reuters) - Singapore's ComfortDelGro Corp said on Friday it is buying a 51 percent stake in private hire vehicle fleet owner Lion City Holdings from Uber Technologies' unit Mieten B.V. for S$295 million ($217.99 million) in cash, in a bid to tackle local rival Grab.
The island-state's biggest taxi operator said in a 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 a ComfortDelGro taxi directly.
The deal, which ComfortDelGro will fund using existing resources, comes to fruition after the company disclosed in August it was in exclusive talks with Uber for a potential tie-up that was seen as a 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 Singapore 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.)