SMRT to expand rail business overseas while planning local private-hire industry growth

Transport operator SMRT Corporation has unveiled plans to expand its rail business outside of Singapore and is also looking towards the private-hire industry for growth from the merger of SMRT’s taxi business and Premier Taxi, according to The Straits Times. 

In an interview with the publication, Seah Moon Ming, chairman of SMRT, said that SMRT may be looking towards Australia for these new opportunities.

In its efforts towards global expansion, SMRT obtained a contract in 2021 to be a “shadow operator” as well as to launch five new metro lines in Paris, France. It is also vying to operate four metro lines in the Swedish capital of Stockholm, according to Seah in the interview. 

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Seah also emphasised that SMRT’S plans for growth are not only for financial sustainability but that it is strategic in its international dealings.

Ngien Hoon Ping, SMRT group chief executive, assured Singaporean commuters in the same interview that it will not be distracted from its primary role of running the rail system locally as SMRT has delineated different teams for local and international business.

Ngien also added that it was meaningful to the quality of Singapore’s transportation system as partners in other countries have expressed interest to collaborate with SMRT.

With regard to SMRT’s growth in mobility with a fleet of private-hire cars, Seah stated a joint-venture between SMRT’s taxi business and Premier Taxi will allow it to become Singapore’s second largest cab operator behind ComfortDelGro.

SMRT also cited the importance of a local company being more responsive to the needs of Singaporeans as another reason for the merger and expressed uncertainty on the sustainability of Singapore’s private hire industry.

Seah further added that SMRT is looking for ways to gain more value from its retail and advertising subsidiary, Stellar Lifestyle which aims at diversifying its portfolio as it expands its offerings beyond point-to-point travel.

Consumers can expect more announcements pertaining SMRT’s new business models and strategy to attract new drivers in the coming months.

SMRT Corporation's merger of its taxi businesses Strides Taxi and Strides Automotive, with Premier Taxis and Premier Automotive Services was announced in earlier this year as it continues to face competition from other ride-hailing companies in Singapore such as Comfort, Grab and new ride-hailing entrants.

As part of the merger, a new joint venture company, Strides Premier, will be formed to hold the merged businesses. Strides Holdings will hold a majority stake in Strides Premier and Premier Corporation while BS Investors will jointly hold the remaining stake. Strides Holdings is a wholly owned subsidiary of SMRT and the parent company of Strides Taxi and Strides Automotive.

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