Singapore’s competition watchdog evaluates the deal for potential anti-competitive practices and seeks public input.
SINGAPORE: The Competition and Consumer Commission of Singapore (CCCS) is scrutinizing Grab’s proposed acquisition of Trans-Cab, the city-state’s third-largest taxi operator, amid concerns about potential anti-competitive practices. Minister of State for Trade and Industry Alvin Tan announced the probe in Parliament on Aug 3, emphasizing that a public consultation will be conducted before a decision is made.
The proposed acquisition, announced last month, includes Trans-Cab’s fleet of approximately 2,200 taxis, over 300 private-hire vehicles, and its vehicle workshop and fuel pump operations. Grab aims to finalize the deal by the fourth quarter of 2023, pending regulatory approval.
Responding to Non-Constituency MP Leong Mun Wai’s concerns about the merger’s potential to disadvantage taxi drivers and consumers, Mr. Tan outlined CCCS’s two-phase review process. The initial assessment, completed within 30 working days, will determine if a more detailed second phase—lasting up to 120 working days—is needed.
The review will evaluate the acquisition’s impact on competition in the point-to-point transport sector, with input from third parties such as competitors, consumers, and stakeholders playing a crucial role. Minister Tan Wu Meng also raised questions about the potential effects on workers and the broader labour market, urging the CCCS to consider the merger’s tripartite outcomes.
This investigation follows the CCCS’s 2018 ruling on the Grab-Uber merger, which was found to have reduced market competition significantly. The commission imposed measures to mitigate the merger’s impact, including a $13 million penalty on both companies.
As public consultation begins, CCCS is urging all stakeholders to participate in shaping the outcome of this major acquisition, which could significantly influence Singapore’s taxi and private-hire transport landscape.
