Singapore’s competition watchdog asked ride-hailing firm Grab and Trans-cab for solutions to address competition concerns following a deal last year to buy the taxi operator.
Grab is one of the city-state’s top ride-hailing companies, with the deal for Trans-cab reported to be valued at around S$100 million ($74 million).
The Competition & Consumer Commission of Singapore (CCCS) said on Thursday that rival ride-hailing platforms, such as Comfortdelgro, will be deprived of drivers who work for Trans-cab if the deal goes through, especially as the city-state faces a driver shortage.
The deal could, therefore, result in fewer choices for passengers and they could also face higher prices, the regulator said, potentially diminishing competition.
The “ruling does not change our determination to do everything that we can to offer affordable, reliable transport options to passengers in Singapore,” said Yee Wee Tang, managing director at Grab Singapore.
Trans-cab did not immediately respond to a request for comment.
The regulator first raised competition concerns in October 2023 after the deal was announced in July.
CCCS has set out a provision for Grab and Trans-cab to offer solutions to address these concerns within ten working days from the release of the statement, before a final regulatory decision on the deal.
Reuters