Grab defends position in Uber deal to Singapore’s anti-monopoly watchdog

SINGAPORE: Grab said on Friday it disagreed with the Singaporean anti- monopoly watchdog’s assessment that its takeover of Uber’s operations had harmed compet it ion and called the commission’s su g ge s t ed me a sure of r emov i n g exc lu s iv i t y arrangements with drivers as “one- sided”.

Earl ier this year, Uber Technologies Inc sold its Southeast Asian business to bigger regional rival Grab in exchange for a stake in the Singapore-based firm. But the deal has prompted regulatory scrutiny.

In early July, the Competition and Consumer Commission of S i n g ap o r e ( CCCS ) provisionally found that the merger had substant ial ly reduced competit ion and suggested various remedies, such as the sale of their car - leasing busine s s e s and removing exclusivity obligations on drivers who use Grab’s ride-hailing platform.

The CCCS is set to make a decision after Grab submitted its representation this week, and also taking into account publ ic 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.

“Grab believes that this double standard goes against the spirit of increasing choices for drivers and riders,” it said.

Grab was the dominant player in Singapore’s ridehailing market even before the Uber merger. It also competes with taxi businesses such as ComfortDelGro Corp Ltd.

Several new players , such as India’s Jugnoo and Singapore- based Ryde, have recently entered the citystate’s ride- hailing market. Indonesia’s Go- Jek has also said it would launch services in Singapore.

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. — Reuters