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Singapore: Grab, Uber and the fare-rising scandal

RIDE-HAILING companies Grab and Uber struck a deal (merger) earlier this year, with Uber selling its Southeast Asia (SEA) business to rival Grab in March in exchange for a 27.5 percent stake in the Singapore-based firm. Soon after, several governments in the region — led by Singapore’s Competition and Consumer Commission — raised concerns about how the transaction would impact the economy, jobs in the region, consumers, and mobility as a whole. Although successive discussions with executives at Uber and Grab didn’t offer many answers, the governments decided to wait, watch, and analyse how it plays out. SEE ALSO: Grab unveils future plans for ridesharing in Southeast Asia Singapore Competition and Consumer Commission — again leading the pack — concluded that the merger has negatively impacted the market and driven up prices for consumers. As a result, the regulator has decided to levy a fine of SGD13 million (US$9.5 million) on Grab, the merged entity. Further, it has ordered the company to open up the market to competitors by removing the restrictions it placed on its driver partners — individuals and taxi fleets. Finally, it has also ordered Uber to sell its car rental business to any rival that makes a reasonable offer. If it intends to sell to Grab, permission must be sought from the Competiton and Consumer Commission. “Regulator said effective fares on Grab rose 10 to 15 percent after the deal, and that the firm now holds a Singapore market share of around 80 percent,” according to Reuters. A decline in market share to benefit Grab? Grab has also been told to maintain its pre-merger pricing algorithm and driver commission rates, which are expected to protect consumers against excessive price surges, and drivers against increases in commissions that they pay to Grab. However, the Competition and Consumer Commission of Singapore said... If you wish to read this full breaking news headline, plus more articles from around Thailand and Asia like, Singapore: Grab, Uber and the fare-rising scandal, simply click on 'Read full story' below, but 1st please give us a 'LIKE' or 'SHARE' before you leave. Thank you Singapore: Grab, Uber and the fare-rising scandal

 

 

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Published By: ASIAN CORRESPONDENT - Tuesday, 25 September, 2018

 

 

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