Grab-Trans-cab acquisition could reduce competition, says CCCS

The acquisition comes amidst a driver shortage affecting competitors, the watchdog said.

Grab Holdings Limited's proposed acquisition of Trans-cab Holdings Ltd. could significantly reduce competition in Singapore's ride-hail market, according to a provisional Statement of Decision issued by the Competition and Consumer Commission of Singapore (CCCS).

In a statement, CCCS said that the deal would entrench Grab’s dominant position in the market. This could disadvantage rival ride-hail platforms by limiting their access to drivers from Trans-cab, which is one of Singapore’s largest independent fleets.

It noted that Grab's planned acquisition comes amidst a driver shortage affecting competitors.

Additionally, the acquisition could also lead to greater "stickiness" of Trans-cab drivers to Grab’s platform, restricting rivals' access to drivers and making it challenging for them to replace any loss of Trans-cab drivers quickly. This is due to existing driver supply issues, the loyalty of drivers to specific platforms, limited non-affiliated fleets, and high costs associated with fleet ownership and driver incentives.

CCCS also said that the merger could increase driver loyalty to Grab and weaken competitors by making it harder for them to attract and retain drivers. This would likely reduce choices for passengers and drivers and potentially lead to higher costs.

Grab has 10 working days to respond to CCCS's concerns before a final decision is made. CCCS will consider any responses before deciding whether to approve or block the acquisition.

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