Grab: Uber takeover will not hurt competition
SINGAPORE: Grab said yesterday it disagreed with the Singaporean anti-monopoly watchdog’s assessment that its takeover of Uber’s operations had harmed competition and called the commission’s suggested measure of removing exclusivity deals with drivers as “one-sided”.
Earlier this year, Uber Technologies Inc sold its Southeast Asian business to bigger regional rival Grab in exchange for a stake in the firm. But the deal has prompted regulatory scrutiny.
Earlier this month, the Competition and Consumer Commission of Singapore (CCCS) provisionally found that the merger had substantially reduced competition and suggested various remedies, such as the sale of their car-leasing businesses and removing exclusivity obligations on drivers who use Grab’s platform.
The CCCS is set to make a decision after Grab submitted its representation this week, and also taking into account public feedback. It has proposed fines on the firms.
Grab in a written response said the commission allowed other players and new entrants to maintain or enter into exclusivity arrangements with drivers, private hire rental fleet and taxi operators without restrictions.
The CCCS has said the exclusivity arrangements mean a new entrant would have to spend a lot of money to build up driver and rider networks similar in scale and size to the incumbents.
The CCCS’s decision could have wider implications, with Malaysia also saying this month that it was studying monopoly risks triggered by the merger of Grab and Uber.
Grab, which maintains that it operates in a market that is broader than private-hire and taxi-booking services, also said it has retained its pre-transaction pricing and driver commissions.