Grab's Cross-Border Taxi Service Launches in Singapore and Johor Bahru, But Higher Fares Deter Some Riders

Key facts

• Grab launched cross-border taxis on May 4, 2026, with bookings required at least 12 hours in advance.
• A ride from Century Square to Mid Valley Southkey cost S$111.20.
• Street-hail fares rose from S$60 to S$80 (Singapore) and from RM120 to RM240 (Malaysia) under the new scheme.
• GrabCar received the first Cross Border Ride Hail Service Operator Licence, valid for three years from April 30.
• Malaysian taxis can now pick up passengers near VivoCity, Century Square, and Joo Koon MRT in Singapore.
• Singapore-registered taxis can drop passengers anywhere in Johor Bahru, Iskandar Puteri, Forest City, Kulai, and Senai.
• Malaysian taxis can drop passengers anywhere in Malaysia, including Kuala Lumpur and Melaka.
• On May 5, the service faced early challenges such as unclear pick-up points and navigation issues.

A New Era for Cross-Border Travel, With Growing Pains

On May 4, Grab began offering cross-border taxi rides between Singapore and Johor Bahru through its app, a service that promises to reduce the 'first-mile and last-mile friction' that has long plagued commuters. But the launch has been met with mixed reactions, as higher fares and early operational hiccups test the appetite of passengers and drivers alike. For years, the only legal alternative to owning a vehicle was to take a street-hail taxi from Ban San Street Terminal to Larkin Sentral Terminal, a journey that involved multiple transfers and long queues. The new service allows passengers to book rides to any location within fixed operating areas in Johor, offering unprecedented convenience — at a price.

Higher Fares Deter Some Passengers on Day One

Under the enhanced cross-border taxi scheme, fares for street-hail rides from Ban San Street Terminal have risen to S$80 from S$60, while trips from Larkin Terminal now cost RM240, double the previous RM120. The price jump has already driven away potential customers. At 10am on Monday, 57-year-old Malaysian taxi driver Shaban Shawal was still waiting for his first passenger at Larkin Terminal. 'Usually by this time, I would have made my first trip … Just this morning, I saw four people walk away because they were shocked by the new price,' he said. The fare increase, he noted, has yet to show any positive impact, though he acknowledged it was only the first day.

New Rules Expand Pick-Up and Drop-Off Options

The enhancements, announced by the transport ministries of both countries on Thursday, allow Singapore taxis with a Cross Border Ride Hail Service Operator Licence to pick up passengers not only at Larkin Terminal but also at Toppen Shopping Centre, Mid Valley Southkey Mall, and Angsana Mall. The Land Transport Authority awarded the first such licence to GrabCar, effective from April 30 for three years. In Singapore, Malaysia taxis can now pick up passengers near VivoCity, Century Square Shopping Centre, and Joo Koon MRT, in addition to Ban San Street Terminal. Malaysian taxis can drop passengers anywhere in Singapore, while Singapore-registered taxis can drop passengers anywhere in Johor Bahru, Iskandar Puteri, Forest City, Kulai, and Senai. Malaysian taxis are also allowed to drop passengers anywhere in Malaysia, including Kuala Lumpur and Melaka, president of the Singapore-Johor Taxi Association.

Early Operational Challenges Surface

A test ride on May 5 revealed that the service is still in its initial implementation phase. The pick-up point near Century Square in Tampines, just outside Tampines MRT station, was not clearly marked, and the driver encountered minor navigational issues. The ride from Century Square to The Mall at Mid Valley Southkey cost S$111.20, a significant premium over street-hail options. Despite these challenges, the service offers a level of convenience that street-hail taxis cannot match: passengers can be picked up from anywhere in Singapore and dropped off anywhere within fixed operating areas in Johor, eliminating the need to travel to terminal points.

Wider Implications for Cross-Border Mobility

Experts say the new service reduces the 'first-mile and last-mile friction' that has long been a barrier to cross-border travel. By allowing pick-ups and drop-offs at multiple locations, the scheme could encourage more people to travel between Singapore and Johor Bahru without owning a car. However, the higher fares may limit its appeal to those who prioritize convenience over cost. The street-hail option remains cheaper, but it requires passengers to travel to designated terminals and accept fixed drop-off points. For now, the market will decide whether the premium for flexibility is worth it.

Outlook: A Test of Demand and Adaptation

As the service enters its first month, both passengers and drivers are adjusting to the new landscape. Shaban Shawal, the Malaysian taxi driver, remains cautious: 'Maybe after a month, we can better assess.' The success of Grab's cross-border service will depend on whether the added convenience can justify the higher cost, and whether operational teething issues can be resolved quickly. With the licence valid for three years, Grab has time to refine the service. But the initial reception suggests that price sensitivity remains a significant hurdle, especially for regular commuters who have long relied on the cheaper street-hail option.

The bottom line

• Grab's cross-border taxi service launched on May 4, 2026, with mandatory 12-hour advance booking.
• Fares for street-hail rides doubled to S$80 (Singapore) and RM240 (Malaysia) under the new scheme.
• GrabCar holds the first three-year Cross Border Ride Hail Service Operator Licence, allowing pick-ups at three additional Malaysian malls.
• Malaysian taxis can now pick up passengers at three new locations in Singapore and drop off anywhere in the country.
• Early challenges include unclear pick-up points and navigation issues, indicating the service is still in its initial phase.
• Experts believe the service reduces first-mile and last-mile friction, but higher fares may deter price-sensitive commuters.