Grab-Uber Merger's Impact on Grab’s Market Share, Fares, Driver Earnings and Quality of Service
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the 2018 Grab-Uber merger's impact on market share, fares, driver earnings, and service quality, with MP Mr Leong Mun Wai asking if past penalties effectively addressed anti-competitive effects. Minister for Trade and Industry Gan Kim Yong explained that the Competition and Consumer Commission of Singapore (CCCS) initially imposed directions to freeze pricing and remove driver exclusivity to mitigate anti-competitive impacts. He noted that competitors like Gojek, Ryde, and TADA have since entered the market, while the 2020 Point-to-Point Transport Regulatory Framework now mandates driver flexibility across platforms. Consequently, CCCS released its specific directions as the sector is now governed by regulatory frameworks that ensure continued openness and contestability.
Transcript
53 Mr Leong Mun Wai asked the Minister for Trade and Industry since the Grab-Uber merger in 2018 which was found to be anti-competitive on Singapore's ride hailing market (a) whether the Government has data on the merger's impact on Grab's (i) market share (ii) fares (iii) driver earnings and (iv) quality of service; (b) whether the financial penalties and measures imposed in 2018 were sufficient to overcome the anti-competitive impacts; and (c) if not, whether the Competition and Consumer Commission of Singapore will consider taking any further action and, if not, why not.
Mr Gan Kim Yong: In 2018, the Competition and Consumer Commission of Singapore (CCCS) imposed directions on Grab and Uber to reduce the anti-competitive impact of their merger, as Grab's market share had increased post-merger. CCCS's directions required Grab to maintain its pre-merger pricing and product options and remove exclusivity obligations imposed by Grab and Uber on drivers and taxi fleets. Other ride-hail platforms, including Gojek, Ryde and TADA, have since entered the market, reducing Grab's market share.
In 2020, the Point-to-Point Transport Regulatory Framework was introduced by LTA. The new regulation mandated that licensed operators, including Grab, cannot prevent their drivers from driving for other operators. With the sectoral regulatory framework in place, CCCS released the directions imposed on Grab. CCCS will continue to work closely with the Land Transport Authority and the Public Transport Council to ensure that the Point-to-Point Transport sector remains open and contestable.