In Singapore, there’s been a bit of a roadblock for Grab, the ride-hailing giant, as they try to acquire Trans-cab. The Competition and Consumer Commission of Singapore (CCCS) has raised concerns about this proposed deal, which would essentially give Grab control over the third largest cab company in the city-state. Apparently, there have been some concerns from third parties about how this acquisition may limit Trans-cab drivers’ ability to use rival ride-hail platforms. This could potentially create barriers for competition and entry for other ride-hail platforms. So, the CCCS wants to take a closer look at how this deal will impact competition. They’re open to hearing commitments from both Grab and Trans-cab to address these concerns. We reached out to Grab for comment, but they haven’t gotten back to us yet.
Back in August, the CCCS announced they would be examining this deal. If approved, Grab would gain access to over 2,200 cabs and more than 300 private-hire vehicles, in addition to Trans-Cab’s vehicle workshop and fuel pump operations. The CCCS was also interested in comparing the impact of this consolidation in the taxi industry to Grab’s previous acquisition of Uber’s regional business. Grab already has a significant grip on the ride-hailing market in Singapore, with around 75% market share.
Just last month, Grab’s shares took a hit when the Land Transport Authority of Singapore announced a review of the entire ride-hailing and taxi industries. They want to make sure the regulatory framework remains relevant and adaptable to the evolving landscape. In the midst of all this, Grab has been working to expand its marketplace and strengthen its engagement with customers. They’ve launched affordability initiatives and even introduced a flagship subscription program. As a result, they’ve seen increased usage and revenue growth in their ride-hailing business.
It looks like Grab is facing some obstacles along the way, but they’re a resilient company. They’ve seen success in markets like Malaysia, Singapore, and Thailand, where their mobility GMV levels have either reached or surpassed pre-pandemic levels. Despite the challenges, Grab remains committed to their mission of providing convenient and affordable transportation options. We’ll be keeping an eye on how things unfold for them. Stay tuned for more updates.