TRANSPORT operator ComfortDelGro is acquiring Addison Lee, a premium private hire, courier and black taxi provider in the United Kingdom, for £269.1 million (S$461.2 million).
The acquisition – through wholly-owned subsidiary CityFleet Networks – is a catalyst for ComfortDelGro’s expansion into the premium mobility market, and strengthens its overall point-to-point proposition in the UK and globally, the group said in a bourse filing on Wednesday (Oct 23).
The addition of Addison Lee will extend ComfortDelGro’s London footprint and grow its taxi and private hire network to more than 34,000 vehicles globally.
Addison Lee is the largest premium point-to-point operator in the UK, with 7,500 drivers and 5,000 vehicles.
London’s black cabs, also known as hackney carriages, have operated in the capital since 1634, well before the invention of the internal combustion engine. Famously, their drivers must pass what is believed to be the world’s toughest taxi exam to earn the right to drive these cabs.
ComfortDelGro managing director and group chief executive Cheng Siak Kian said: “Beyond expanding our footprint in the UK, this acquisition will enable us to leverage Addison Lee’s expertise to deepen and scale our premium point-to-point capability globally.”
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ComfortDelGro chairman Mark Greaves said that the acquisition is in line with its strategy to expand the group’s point-to-point mobility portfolio.
He noted that 90 per cent of Addison Lee’s existing fleet is already made up of cleaner-energy vehicles, which will also help accelerate the group’s fleet transition journey.
ComfortDelGro operates CityFleet Networks in several locations across the UK.
It also provides pre-planned and on-demand ground transportation to businesses, as well as private and ride-share transfers to airports, bus and train stations, and ports through its recently acquired business, CMAC Group.
ComfortDelGro also owns and operates several bus and coach services across the UK.
Shares of ComfortDelGro closed 0.7 per cent or S$0.01 lower at S$1.46 on Wednesday, before the announcement.
