Competition and Consumer Commission of Singapore has imposed $9.5mn penalty on Grab and Uber to deter from anti-competitive merger, and directed them to implement pro-competition measures to restore competition and level playing field for new players such as maintaining pre-merger pricing, removing Grab’s exclusivity agreements and requiring Uber to sell vehicles of Lion City Rentals to any potential competitor except Grab.

At conclusion of investigation, CCCS found that the merger has led to substantial lessening of competition in the ride-hailing market in Singapore. Post Merger, Grab had increased fares between 10 and 15% by decrease in amount and frequency of rider promotions and driver incentives. Also, potential competitors were hampered by exclusivity agreements with taxi companies, car rental partners and some of its drivers.

Mr. Toh Han Li, the Chief Executive of CCCS said that the merger removed Grab’s closest rival, to the detriment of Singapore drivers and riders. The Companies can continue to innovate in this market, through means other than anti-competitive mergers.

For more: https://www.cccs.gov.sg/media-and-publications/media-releases/grab-uber-id-24-sept-18