SINGAPORE, June 5 — Grab’s new taxi service, GrabCab, will launch in July with an initial fleet of 40 fifth-generation Toyota Prius electric hybrid taxis, making it Singapore’s sixth taxi operator.

GrabCab, a subsidiary of GrabRentals, announced that it plans to gradually expand its fleet, with Hyundai Kona electric hybrids joining in August and a fully electric vehicle expected in 2025, according to a report published in The Straits Times today.

The company aims to meet the Land Transport Authority’s minimum fleet requirement of 800 taxis for a street-hail operator licence within three years.

Director of GrabRentals Victor Sim said around 700 to 800 drivers have applied to join GrabCab, with 400 to 500 selected based on eligibility, including possession of a Taxi Driver’s Vocational Licence (TDVL) and a clean safety record.

Applicants without a TDVL will be guided to enrol in a fully-funded training course to obtain the licence.

Rental rates for GrabCab start at S$117 (RM385) per day, with the first 100 drivers offered a discounted rate of S$112 per day, slightly higher than rates offered by competitors such as ComfortDelGro and Prime Taxi.

For passengers, fares for the Toyota Prius models will include a S$4.60 flag-down rate, with 26 cents charged per 400m under 10km and every 350m thereafter, as well as 26 cents for every 45 seconds of waiting.

Fares for GrabCab’s electric vehicles will start at S$4.80, with the same distance and waiting charges.

Sim said GrabCab’s fare structure is aligned with industry rates and that its taxi meters are integrated with the Grab app, allowing drivers to seamlessly handle both street-hail and ride-hail bookings.

The app also features a relief driver matching service that uses a chat function, offering a more convenient alternative to traditional methods.

Sim emphasised GrabCab’s strengths in technology and partnerships, which allow it to offer drivers up to 25 per cent discounts on fuel and EV charging at selected providers.

Addressing concerns from existing Grab-affiliated taxi drivers, Grab clarified there would be no changes to the app’s job allocation system to favour GrabCab drivers.

Sim assured that the aim is to increase the overall supply of drivers, especially by re-engaging inactive TDVL holders, rather than competing with current operators.