Multi-national land transport company and taxi operator ComfortDelGro Corporation Limited and ride-hailing firm Uber Technologies, Inc. have entered into a strategic agreement to form a joint venture.

Under the agreement, which is subject to regulatory approval, ComfortDelGro will acquire a 51% stake in Uber’s wholly-owned car rental subsidiary in Singapore, Lion City Holdings Pte Ltd. for $642 million.

Uber currently operates Lion City Rentals (LCR) which has a fleet of about 14,000 vehicles. Upon completion of the transaction, LCR will be able to benefit from ComfortDelGro’s fleet management and operations. It will also create a path for ComfortDelGro’s taxi drivers to receive ride requests on the Uber driver app, and provide users of the Uber app an opportunity to directly book a ComfortDelGro taxi.

“This strategic collaboration is good news for our two companies, it is also great for riders, drivers and for Singapore,” said Brooks Entwistle, Uber’s Chief Business Officer for Asia Pacific. “This joint venture is a testament to the tremendous potential of ridesharing technology in this highly competitive local transportation market, and to our commitment to partnering for greater growth as we continue to build a sustainable global business.”