Singapore proposes penalties for Grab

SINGAPORE: Singapore yesterday threatened to force Grab to lower prices and revamp parts of its business, accusing the ride-hailing company of abusing its dominance after acquiring Uber Technologies Inc’s Southeast Asian business.

“Grab will have to abolish some driver restrictions, restore pre-merger pricing formulas and pay unspecified financial penalties,’’ the Competition and Consumer Commission of Singapore (CCCS) said in a statement, citing complaints from riders and drivers.

“Uber will have to sell Lion City Rentals to any potential competitor with a reasonable offer, and not be allowed to sell the car-rental service for drivers to Grab without the agency’s approval,’’ the agency said.

The move comes as Indonesia’s Go-Jek, a challenger in the ride-hailing and food delivery business in Southeast Asia, prepares to enter Singapore and three other markets in Southeast Asia, escalating competition with arch-rival Grab.

A representative for Grab didn’t immediately respond to a request for comment.

“CCCS has provisionally found that the transaction has removed competition between Grab and Uber, which were each other’s closest competitor,” the agency said in the statement.

Other proposed remedies i nclude removal of exclusivity agreements with drivers and taxi fleets.