SMRT — Singapore’s third largest cab operator — is considering selling its taxi business to Grab

SMRT, Singapore’s third largest cab operator with a fleet of 3,400 vehicles, may be leaving the taxi business after 27 years. The company, which is fully owned by the government’s Temasek Holdings, is in discussions to sell its taxi business to Malaysian private-hire car operator (and Uber Singapore’s fiercest rival) Grab. The proposed deal includes SMRT having a stake in Grab and at least one seat on its board of directors.

But according to The Straits Times, it seems the negotiation has stalled due to the issue of jobs for SMRT Taxis employees. SMRT is reportedly pushing for the buyer to allow all affected workers to keep their jobs, while Grab isn’t too interested in increasing its own headcount, since it already has its own fleet.

It is believed that SMRT has been reviewing its businesses since last November, when Temasek Holdings became its sole owner and delisted the company. As such, SMRT is focusing its efforts increasingly on its rail business, in order to help Singapore’s MRT and LRT lines run more smoothly than they’ve been doing recently.

If SMRT’s taxi sale goes over successfully, this could be the beginning of the company’s move to let go of its less substantial businesses with low margins (such as its bus business).