Strides and Premier to merge, forming Singapore’s second-largest taxi operator

SINGAPORE: Strides Taxi and Premier Taxis will merge to create Singapore's second-largest taxi operator, transport operator SMRT announced on Thursday (Apr 13) in a news release.

A new joint venture company, Strides Premier, will be formed to hold the merged business. The merger will take effect from May 1.

According to data as of February 2023, it will have a fleet of about 2,500 taxis, overtaking second-largest operator Trans-Cab, which has about 2,170 taxis. ComfortDelGro has the largest fleet in Singapore, of around 8,700 taxis.

"As the demand for taxis and private hire cars rebounds to pre-pandemic levels, the merger will help to safeguard the long-term interest of drivers and passengers, as well as enhance efficiency," said SMRT. 

"Strides Premier will offer a full suite of technical expertise and workshop capabilities to service the expanded fleet."

SMRT said the combined fleet will offer to hirers a wider choice of vehicles and an extensive portfolio of corporate clients to supplement their income, on top of their usual street and ride-hail jobs.

"With this merger, we can leverage technology, economies of scale and synergies to offer more innovative and cost-effective solutions to passengers and hirers. We hope to be a better alternative transport provider in the market," it added. 

Strides Holdings, a wholly owned subsidiary of SMRT and the parent company of Strides Taxi and Strides Automotive, will hold a majority stake in Strides Premier. Premier Corporation and BS Investors will jointly hold the remaining stake. 

The merger will also involve Strides Automotive Services and Premier Automotive Services. 

CEO of Strides Premier Ang Wei Neng said: "This merger is a significant milestone to help drive greater efficiency and better services for both our vehicle hirers as well as end users of taxis and private hire cars."

"As Strides Premier, we will continue to introduce innovative and flexible solutions to further enhance the overall end user experience in Singapore’s point-to-point industry.”

Founder of BS Capital Group Raymond Ng said that this is an opportunity for further growth, after the company's acquisition of Premier Taxis last year. 

"We are committed to serve our existing customers better and to attract more to join us in this competitive point-to-point market," he said.

In 2022, point-to-point transport trips recovered to 80 per cent of pre-pandemic levels, Senior Minister of State for Transport Amy Khor said in parliament in March.

SMRT said that the new joint venture company will work closely with the National Taxi Association (NTA) and National Transport Workers' Union to engage existing drivers and staff of all the entities involved in the merger. 

All current rental arrangements of the private hire cars, taxis, limousines and private cars will not be affected, and staff are expected to continue with their duties after the merger. 

"Strides Premier is committed to a smooth transition for all parties. We look forward to serving our customers and hirers with a more attractive and sustainable suite of offering," said SMRT. 

Adviser to NTA Yeo Wan Ling said the association is supportive of the merger.

"NTA is optimistic that the merger would yield synergies and economies of scale that can translate to lower operating costs for drivers, for example, in terms of rental and fuel costs," she added.

"NTA and its leaders are in touch with the Strides Premier leadership team. We look forward to working closely with the new leadership to prioritise driver-members’ needs and to assure them of fair terms and treatment, enhanced work conditions, and stronger support for sustainable livelihood."