Transport giant ComfortDelGro is acquiring 217 taxis and taxi licences from Shenyang Tian Wen Taxi Co in a move that will make it the largest taxi operator in Shenyang, China.
Shenyang is the provincial capital of Liaoning province in north-east China.
The 71.6 million yuan (S$15 million) acquisition will boost ComfortDelGro's fleet there to 1,503 taxis, the Singapore-listed group announced yesterday.
ComfortDelGro chief executive Yang Ban Seng said: "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...
"Together with the strong regulatory environment, it gives us confidence to invest and expand our fleet. We believe that both taxis and private-hire vehicles have their roles to play in providing mobility services in the city."
In Shenyang, the type, size and age of vehicles used for private hire are regulated. The selection and training of drivers are also controlled.
ComfortDelGro said it is because of the level playing field that its two taxi firms in Shenyang - Shenyang ComfortDelGro Taxi Co and CityCab (Shenyang) Co - and nearby Jilin City "have been experiencing fully hired-out fleets for several years now".
ComfortDelGro's situation in China is in contrast to what it has been facing in Singapore, where its fleet has shrunk by close to 20 per cent since private-hire players entered the fray in 2013.
The group said it is also investing in a new vehicle repair workshop in Jilin City. The 2,200 sq m facility, expected to cost 5.3 million yuan, will be used to service its 729-strong Jilin taxi fleet as well as provide repair and maintenance services to third parties.