Singapore – The Competition and Consumer Commission of Singapore has stated that the proposed Grab and Trans-cab raises competition mergers following its Phase 1 review. The competition initially opened public feedback on the merger around August this year.
According to the commission, they need to review the competition effects of the proposed acquisition in greater detail.
They added that the greater amount of feedback they received from notes on concerns on the effect of Grab’s ownership of the Trans-cab fleet on Trans-cab drivers’ usage of rival ride-hail platforms, and may raise barriers to expansion and entry for Grab’s rival ride-hail platforms, given the importance of scale in the ride-hail platform industry.
“At this stage, the parties may offer commitments to address the potential competition concerns of the proposed Acquisition raised by CCCS. Otherwise, CCCS will proceed to a more in-depth phase 2 review of the proposed acquisition upon CCCS’s receipt of the relevant documents from the parties. commitments may also be offered at any time during a phase 2 review,” they stated.
Grab announced that it is acquiring Trans-cab back in July this year, stating back then that the acquisition will cover Trans-cab’s taxi and car rental business, maintenance workshop, and fuel pump operations.
