Impact of Grab-Uber Proposed Takeover
Ministry of TransportSpeakers
Summary
This question concerns the Grab-Uber merger’s impact on employment and public transport services, as raised by Ms Joan Pereira. Minister for Transport Khaw Boon Wan explained that 300 Uber employees received paid leave during placement, while Grab honored contracts for up to 400 workers. Over 9,000 of Uber’s 10,000 exclusive drivers joined Grab, with agencies like Workforce Singapore assisting the remainder with employment and contractual disputes. To protect the transport sector, the Ministry of Transport and Land Transport Authority are monitoring developments to intervene with regulatory frameworks as necessary. This ensures an open and contestable market, preventing any single player from dominating the industry to the detriment of commuters and drivers.
Transcript
2 Ms Joan Pereira asked the Minister for Transport following the Grab-Uber proposed takeover (a) whether many people will be out of a job as a result of this deal; (b) if so, how many people will be so affected and what is being done to help these workers; and (c) what is the impact of this on the overall public transport service.
Mr Khaw Boon Wan: The Grab-Uber merger impacted several groups of workers and drivers, but to different degrees. First, about 300 former employees of Uber were given paid leave of up to three months while Grab identifies suitable positions for them. Those who are not placed within Grab will be compensated in accordance with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
Second, Uber used to have 300 to 400 contract workers. Grab has committed to take over and honour the terms and durations of their contracts.
Third, Uber had about 10,000 drivers driving exclusively for it at the point of merger. More than 9,000 of the affected Uber drivers have since joined Grab. For those who do not, Workforce Singapore and the National Trades Union Congress' (NTUC's) Employment and Employability Institute are helping them secure new employment. The Ministry of Manpower and the Land Transport Authority (LTA) are also working with the National Private Hire Vehicles Association (NHPVA) and National Taxi Association (NTA) to help them resolve any outstanding payments or contractual disputes with Uber.
The point-to-point transport sector is still evolving. The industry is not yet at its steady state. The Ministry of Transport and LTA are monitoring the development and will intervene as necessary, including instituting a fair regulatory framework, to ensure that it stays open and contestable, so that no one single market player can dominate the industry to the detriment of commuters and drivers.