Singapore’s competition watchdog said on & nbsp on Monday( Oct 16 ) that the proposed takeover of Trans-cab by tech firm Grab may have an impact on how drivers employed by the taxi operator use other ride-hailing platforms.
Given the significance of scale in the industry, the Competition and Consumer Commission of Singapore( CCCS ) added that this could” raise barriers to expansion and entry” for rival platforms. & nbsp,
Despite the fact that registered ride-hailing users are not permitted to establish special arrangements preventing their drivers from using other platforms under Singapore’s point-to-point travel regulatory framework, these concerns were raised as part of feedback from business figures.
If the merger, which was first announced in July, is approved, Grab’s private-hire car rental division Grab Rentals will buy 100 % of stocks in andnbsp, Trans – cab, the third-largest car company in Singapore with a fleet of more than 2,500 vehicles.
Subject to regulatory clearances and other usual closing conditions, both parties anticipate that the agreement will shut in the third quarter of 2023.
In August, the CCCS -& nbsp, a statutory board under the Ministry of Trade and Industry, asked for public input on how the decision might impact the cost, quality, and quantity of street and ride-hailing services provided by taxi and private-hire car drivers, among other factors.
Grab and Trans-cab have argued that the acquisition & nbsp won’t significantly reduce competition, citing” minimal overlaps” between them, the absence of prohibitive barriers to entry, and a highly fragmented and competitive rental market.