Tag: Trans-cab

Singapore – The Competition and Consumer Commission of Singapore (CCCS) has released a Statement of Decision (SDP), noting that the acquisition of Trans-cab by ride-hailing giant Grab is likely to result in a substantial lessening of competition in the market for the supply of ride-hail platform services to drivers and passengers in Singapore.

According to the commission, it has found that the proposed acquisition is likely to entrench and strengthen Grab’s already dominant position in the ride-hail platform market to the detriment of drivers and passengers.

It has also noted that that Grab’s plans to acquire Trans-cab, which is one of the largest fleets (taxi or private-hire car) not owned by or in partnership with any ride-hail platform in Singapore, to increase the availability of drivers on its ride-hail platform comes at a time when rival ride-hail platforms are facing driver supply shortages.

“There are also various strategies which may be employed by Grab to induce Trans-cab drivers to increase their usage of Grab’s ride-hail platform. The Proposed Acquisition is thus expected to result in a greater degree of “stickiness” of Trans-cab drivers to Grab’s ride-hail platform and a potential reduction in usage of rival ride-hail platforms. Consequently, rival ride-hail platforms’ access to Trans-cab drivers post-merger is likely to be significantly restricted,” the commission said in a press statement.

CCCS also notes that if competition constraints on Grab from rival ride-hail platforms are weakened, drivers and passengers could face higher prices and fewer choices for ride-hail platform services. 

Grab has also recognised that through the proposed acquisition, it will likely be able to significantly save on the incentives that it would have to pay to drivers as compared to if it employed alternative means to increase driver supply.

Nonetheless, CCCS is welcoming both parties to address the competition concerns raised before the commission makes its final decision about the merger.

Grab first announced its interest to acquire Trans-cab via its GrabRentals arm in July 2023, with initial feedback from the public regarding the merger happening a month later. Initial concerns about the merger have already been manifested by the agency since last year, considering it will make Grab becoming the dominant ride-hailing company in Singapore, discouraging competition.

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.

Singapore – Grab has announced that it will acquire Trans-cab, one of the largest taxi operators in the country. The acquisition will cover Trans-cab’s taxi and car rental business, maintenance workshop, and fuel pump operations. At the moment, Trans-cab’s combined taxi and private-hire-vehicle (PHV) fleet has more than 2,500 vehicles registered.

Grab plans to launch an enhanced Grab Driver application that will be integrated with the Mobile Display Units in Trans-cab taxis. The app will enable Trans-cab taxi drivers to manage their earnings and receive bookings from the Grab platform as well as Trans-cab’s existing call centre, all through a single platform. 

With Grab’s allocation technology, Trans-cab drivers will be assigned bookings in a highly efficient and intelligent way, maximising their productivity so they can earn more. 

Moreover, Trans-cab drivers that join the Grab platform will also receive benefits offered to all Grab driver-partners, including free coverage through Grab’s Personal Accident Insurance whenever they are online on the Grab platform, as well as access to GrabAcademy, where they can pick up skills from a wide range of free courses from data analytics to supply chain management and digital marketing. Driver-partners can also participate in Grab’s loyalty programs for additional rewards.

Teo Kiang Ang, founder and chairman of Trans-cab, said, “Trans-cab is very close to my heart, and our taxi drivers are like family. Together with them, we grew Trans-cab from just a small fleet of 50 taxis two decades ago, to become Singapore’s second largest taxi company at one point. As we consider their future and what is best for them, I feel assured that with Grab, we have found the right partner to hand over Trans-cab to, who will do what is best for the drivers and the business.”

Meanwhile, Yee Wee Tang, managing director at Grab Singapore, commented, “Teo’s story is truly inspiring. He built multiple successful businesses from humble beginnings and we’re incredibly proud to continue part of his legacy. Trans-cab is a very well-run taxi company and there is a lot that we can learn from Mr. Teo and the Trans-cab team. We look forward to welcoming the Trans-cab fleet and team into ours.”

He added, “We see this as a strategic match with win-win-win outcomes for all. By boosting the number of drivers on our platform and helping them to operate more efficiently, we improve how quickly and reliably we find a ride for our passengers, whenever they need one.”