The scrutiny comes after Grab announced its intention to acquire Trans-cab in July, forming a formidable fleet of over 2,500 vehicles encompassing both taxis and private-hire vehicles owned by Trans-cab, per Reuters.
Following the submission of requisite documents by the involved parties on January 25, the CCCS expressed its inability to confirm that the deal would not lead to competition concerns, prompting the current in-depth review.
The CCCS, in a statement, declared, “Upon completion of the review, the CCCS will decide whether to issue a favorable or an unfavorable decision on the proposed acquisition.”
One major point of contention identified by the commission is Grab’s proposed two-year duration to address the competition concerns raised. The CCCS deems this timeline inadequate, emphasizing the need for a more comprehensive and prolonged commitment to ensure a competitive landscape in the ride-hailing and taxi industry.
Additionally, the commission raised concerns about the efficacy of Grab’s self-policing monitoring mechanism. The CCCS argues that the current system is insufficient, calling for a more robust framework to guarantee fair competition within the market.
This development underscores the regulatory scrutiny that large-scale acquisitions in the transportation sector face. As the CCCS delves into the details of the proposed deal, stakeholders are keenly awaiting the outcome, which could potentially reshape the competitive dynamics of Singapore’s ride-hailing and taxi industry.