(Reuters) – Singapore’s competition watchdog has asked car rental firm Grab and Transcab to submit solutions to address competition concerns after last year’s deal to buy the taxi firm.
Grab is one of the city-state’s largest ride-hailing companies, with the deal for Transcab reportedly worth around S$100 million (US$74 million).
Singapore’s Competition and Consumer Commission said on Thursday that rival ride-hailing platforms, such as Comfortdelgro, would be deprived of drivers employed by Trans-cab if the deal goes through, especially as the city-state faces a driver shortage.
Accordingly, the regulator said the agreement could lead to fewer choices for passengers, and they could also face higher prices, which could reduce competition.
“The ruling does not change our determination to do everything we can to provide reliable and affordable transport options for commuters in Singapore,” said Yi Wei Tang, Managing Director of Grab Singapore.
Transcap did not immediately respond to a request for comment.
The regulator first raised competition concerns in October 2023 after the deal was announced in July.
The California Transportation Regulatory Commission has placed a requirement on Grab and TransCab to submit solutions to address these concerns within ten business days of the release date, before making a final regulatory decision on the transaction.
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