Grab is launching its own taxi fleet, GrabCab with the first batch of vehicles hitting the roads in July. SMU Assistant Professor of Strategy and Entrepreneurship (Education) Terence Fan noted that Grab is mainly targeting newcomers or inactive taxi license holders. However, drivers from other taxi firms may also switch if Grab offers more attractive terms. Asst Prof Fan added that GrabCab's entry could drive overall taxi rental rates down. "Other operators may adopt a wait-and-see stance, but if many drivers join GrabCab, competitors will likely revise their packages in response," he said.
