Singapore’s Watchdog Raises Concerns Over Grab’s Acquisition of Trans-cab

Singapore’s Competition & Consumer Commission (CCCS) has raised significant competition concerns over the acquisition of taxi operator Trans-cab by ride-hailing giant Grab. The deal, which was announced in July last year and valued at approximately S$100 million ($74 million), could impact the competitive landscape of the city’s ride-hailing industry.

In a statement released on Thursday, the CCCS warned that the acquisition could lead to a shortage of drivers for rival platforms such as ComfortDelGro. This potential driver shortage could restrict passenger options and drive up prices, thereby diminishing competition in Singapore’s already strained ride-hailing market.

“Rival ride-hailing platforms, such as ComfortDelGro, will be deprived of drivers who work for Trans-cab if the deal goes through,” the CCCS stated. The watchdog highlighted the ongoing driver shortage in the city-state, stressing that the merger could exacerbate this issue and reduce choices for consumers.

Despite the concerns, Grab Singapore’s managing director, Yee Wee Tang, expressed the company’s commitment to providing affordable and reliable transport options. “This ruling does not change our determination to do everything that we can to offer affordable, reliable transport options to passengers in Singapore,” Yee Wee Tang told Reuters.

The CCCS first raised competition issues regarding the acquisition in October 2023, following the deal’s announcement in July. In light of these concerns, the commission has mandated that Grab and Trans-cab propose solutions to mitigate these competitive risks within ten working days from the statement’s release. This provision aims to ensure that the potential downsides of the merger are addressed before a final regulatory decision is made.