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SINGAPORE, Nov 21: Grab is now free to adjust its rates, driver commission rates, and make other changes to its service offerings. Singapore’s competition watchdog said it would publish the directives imposed on the private transport company after its merger with Uber in 2018.
The Competition and Consumers Commission of Singapore (CCCS) announced yesterday that with a new regulatory framework for the point-to-point transport sector introduced on October 30, it would publish its directives with immediate effect.
The regulatory framework granted ride-sharing licenses to five companies, including the private car rental service GrabCar.
It ensures that tariffs for point-to-point transport services are transparent and clearly communicated to travelers, leaving it to market forces to determine the tariff levels.
In a statement issued shortly after the CCCS announcement, Grab said it would be “prudent” with its pricing structure and policies.
At the moment, the only change you would make to your rates is a 30 cent “platform fee” for your transportation services. This will be implemented in the coming months.
Grab also said it was committed to maintaining its current pricing structure and policies for at least the next six months, given the Covid-19 situation.
‘Timely’ to publish directives
Under CCCS directives that went into effect on September 24, 2018, six months after the merger, Grab was directed to maintain its pre-transaction pricing, pricing policies, and product options, including fees and pricing structures. driver commissions, for all products on your platform.
Exclusivity agreements with any taxi fleet were also ordered to be eliminated to increase options for drivers and passengers.
The watchdog imposed the directives as part of a violation decision against Grab and Uber after the sale of Uber’s business in Southeast Asia to Grab in March 2018.
As part of the deal, Singapore-based Grab took over Uber’s ride-sharing and food delivery business in the region.
The US private transport company, in turn, obtained a 27.5 percent stake in Grab, and its chief executive, Dara Khosrowshahi, joined Grab’s board.
CCCS later stated that the agreement had violated Singapore’s Competition Law and substantially reduced competition in the sector. Grab also raised its fees after the acquisition, the commission found.
CCCS said that with the government’s new regulatory framework for the sector, there are a number of operators in the point-to-point transportation sector at the moment. Besides Grab, the other licensed operators are Comfort Transportation run by ComfortDelGro, Velox Digital Singapore, more commonly known as Gojek, as well as Tada Mobility, the newest entrant to the rideshare scene.
A fifth company, Ryde Technologies, received a provisional license for one year and must adjust its operations to meet regulatory standards to be considered for a full license. CCCS said: “With a sectoral regulatory framework now in place, CCCS sees fit to publicize the instructions imposed on Grab, as the identified issues are more appropriately considered and addressed in the context of the sectoral regulatory framework.”
He added: “CCCS will continue to work closely with the Land Transportation Authority and the Public Transportation Council to ensure that the point-to-point sector remains open and controversial.” With the lifting of the directives, CCCS added that it would no longer issue a decision on Grab’s earlier request to impose the 30-cent platform fee.
Andrew Chan, managing director of transportation at Grab Singapore, said the fee, which will be 32 cents with goods and services tax, would help the company maintain and improve security measures, cover other operating costs and ensure the well-being of its driver-partners. in a sustainable way.
He added: “We will continue to strive to be the preferred choice for our passengers and provide a viable revenue platform to our driving partners by offering relevant services at competitive prices.” – TODAY
