Written reply to PQ on potential implications of a monopoly in ride hailing and taxi services market

Question

Mr Yip Hon Weng: To ask the Minister for Trade and Industry (a) what are the potential implications of a dominant player emerging in the ride hailing and taxi services market for both (i) consumers and (ii) drivers; and (b) what measures are in place to prevent the creation of a monopoly in the Singapore market and to ensure a competitive landscape.

Written Answer by Minister for Trade and Industry Gan Kim Yong

1. The emergence of a dominant player is not problematic per se, as long as it does not abuse its position to undermine consumer, driver, or supplier interests or create barriers that prevent the entry of new players and competitors. The Point-to-Point (P2P) Transport Industry Act sets out the regulatory framework for P2P operators. This includes maintaining an open and contestable market and prohibiting operators from offering exclusive arrangements that “lock in” drivers and prevent them from driving for competitors. In addition, the Competition and Consumer Commission of Singapore is empowered under the Competition Act to take enforcement action against anti-competitive mergers or the abuse of dominant position.