Competition watchdog says Grab’s plan to acquire Trans-cab will significantly weaken rivals

SINGAPORE: An acquisition of taxi operator Trans-cab by Take will a great deal weaken its competitors, stated Singapore’s competitors watchdog following an in-depth overview of the proposed takeover.

In a media liberate on Thursday (Jul 11), the Opponents and Consumer Charge of Singapore (CCCS) added that drivers and passengers might presumably well additionally face increased prices if competitors constraints on Take from rival platforms are weakened.

It will additionally lead to fewer picks for scurry-hailing platform services and products.

“Take has also recognised that during the proposed acquisition, it is on the full in a recount to a great deal put on the incentives that it might per chance really presumably well well want to pay to drivers as compared with if it employed different technique to carry out bigger driver provide,” stated CCCS.

In its provisional resolution, CCCS stumbled on that the proposed acquisition is in all probability to guide to a “vital lessening of competitors” within the marketplace for the provision of scurry-hail platform services and products to drivers and passengers. This infringes competitors authorized pointers in Singapore, which prohibits anti-competitive mergers.

Take and Trans-cab luxuriate in 10 working days to carry out their representations on the concerns raised, before CCCS decides whether to terminate the deal or let it wade through.

The acquisition of Singapore’s third-largest taxi operator Trans-cab, which has a rapid of larger than 2,500 vehicles, used to be first launched last July. It covers Trans-cab’s taxi and automobile rental commercial, repairs workshop and fuel pump operations.

The two companies beforehand stated that 100 per cent of the shares in Trans-cab will likely be acquired through Take’s deepest-hire automobile rental arm Take Rentals.