Grab to remove ComfortDelGro cabbies from JustGrab after LTA warning letter

SINGAPORE — Ride-hailing firm Grab will be removing ComfortDelGro cabbies from its popular flat-fare feature JustGrab over the next two weeks, after receiving a warning letter from the authorities for going against current regulations.

GrabTaxi Singapore head Melvin Vu said in a media statement on Wednesday (March 21) that “the lack of a formal partnership agreement between Grab and ComfortDelGro means that we will have to remove all ComfortDelGro drivers from JustGrab, whether they have opted in or not”.

Under current regulations, taxi drivers can only accept flat fares set by the third-party taxi booking services — like Grab or Uber — only if these are endorsed by their taxi companies.

Grab does not have a formal tie-up with ComfortDelGro, which is instead pursuing a partnership with US ride-hailing giant Uber.

However, Grab decided last month to open up its JustGrab feature to ComfortDelGro cabbies, in a move seen as an attempt to undercut UberFlash, a similar service launched by Uber and ComfortDelGro in January.

The Land Transport Authority (LTA), which had expressed concerns about Grab’s move, confirmed on Wednesday that it had sent Grab a warning letter. But the authority declined to provide more details.

In his statement, Mr Vu hinted that Grab had not entirely given up on this matter despite the warning from LTA.

“We strongly believe that taxi drivers, as self-employed individuals, should be given the choice and flexibility to join all platforms, and not be limited by corporate arrangements,” said Mr Vu. “We will continue to actively engage the LTA to encourage innovative thinking and taxi companies to work with us on improving driver livelihoods and passenger experience.”