Written reply to PQ on Grab-Uber Merger's Impact on Grab's Market Share Fares Driver Earnings and Quality of Service

Question

Mr Leong Mun Wai: To ask 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.

Written Answer by Minister for Trade and Industry Gan Kim Yong

1. 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.

2. 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.