ComfortDelGro on Monday said it would buy 217 taxi licences and vehicles from Shenyang Tian Wen Taxi Co. for S$14.98 million, as the ride-hailing provider grows its fleet in the Chinese city to 1,503 taxis.
The acquisition will further reinforce the group's position as the largest taxi operator in Shenyang, ComfortDelGro said in a regulatory filing.
"In China, cities like Shenyang, have clear policies aimed at creating a level playing field for both the traditional taxi industry and the new private hire industry," ComfortDelGro Chief Executive Yang Ban Seng said in a statement.
"Together with the strong regulatory environment, it gives us confidence to invest and expand our fleet."
Singapore-based ComfortDelGro has two taxi companies in Shenyang – Shenyang ComfortDelGro Taxi Co. and CityCab (Shenyang) Co.
The company is also the leading taxi operator in Jilin City, the second-largest city and former capital of Jilin province in Northeast China.
To meet the strong demand and to improve service support to taxi drivers in Jilin, ComfortDelGro Taxi is also investing in a new vehicle repair workshop in Jilin City, the company said.
The 2,200 square metre facility, which is expected to cost about S$1.1 million, will be used to service the group's 729 Jilin taxi fleet as well as provide repair and maintenance services to third parties.