Grab’s<\/a>\u00a0plan to shutter\u00a0Uber’s<\/a>\u00a0app quickly following\u00a0its merger deal in Southeast Asia<\/a>\u00a0has hit another snag in Singapore where the ride-hailing firm has been forced to delay closing its rival’s service until May 7.<\/span><\/strong><\/p>\n <\/p>\n T<\/span>his<\/strong> is the second time that Grab has pushed back the removal of Uber’s app in Singapore, which was initially scheduled for closure on April 8 but\u00a0was given an additional week as part of an investigation from the Competition and Consumer Commission of Singapore (CCCS)<\/a>\u00a0which is assessing the merger deal. This new May 7 date is also down to the CCCS probe, with\u00a0the commission issuing an ‘Interim Measures Directions’ (IMD)<\/a>\u00a0to Grab in order to\u00a0“ensure that the market remains open and contestable.”<\/p>\n Those directives — which Grab said it has had a hand in formulating — include measures that prevent Grab from taking Uber’s operational data on customers and their trip history,\u00a0prevent lock-in and exclusivity options for drivers that join Grab or move over from Uber’s Lion City Rental entity, and end any exclusive deals Grab has with Singapore taxi firms.<\/p>\n The CCCS has also ruled that Grab and the Uber service must maintain prices for passengers and drivers, and remind both that their migration to the Grab platform is optional.<\/p>\n The ruling impacts the Singapore market only, which is where Grab is registered. The Uber app has already been closed in six other markets where it operated in Southeast Asia, while the UberEats service will fold into GrabEats by the end of May. Elsewhere, Uber’s ride-hailing service\u00a0is scheduled to be closed on April 16 in the Philippines<\/a>\u00a0where, like Singapore, the regulator had handed down a week-long extension while it looked into the merger deal.<\/p>\n In both extensions, Grab is the one footing the bill for the continued operation of Uber since the U.S. firm has already exited these markets, in terms of funding and staffing,\u00a0Uber’s head of operations for<\/a>\u00a0Asia\u00a0Pacific has said<\/a>.<\/p>\n The CCCS previously said<\/a>\u00a0that it has \u201creasonable grounds\u201d to suspect that the Grab-Uber deal may fall foul of section 54 of Singapore\u2019s Competition Act. The Philippine Competition Commission is still looking into the and there’s no word on whether it will follow the CCCS’ lead and force Grab to keep the Uber app open for a longer period.<\/p>\n The Singapore ruling is a blow for Grab which set out an aggressive two-week timeframe for closing Uber in Southeast Asia, despite not contacting regulators in advance\u00a0of the deal which sees it pick up a dominant slice of app-based taxi books across eight countries in Southeast Asia. The key question for regulators, however, appears to be whether app-based hailing is a market unto itself, or whether it is part of the wider taxi market.<\/p>\n If regulators chose the former option, then Uber-Grab almost certainly creates a monopoly, but since consumers can also hail apps in more traditional ways — e.g. on the street — or via taxi companies’ dedicated apps — as is the case in Singapore — then the deal hasn’t created a dominant player. It’s certainly a tricky one to assess.<\/p>\n Meanwhile, here is Grab’s statement on the Uber app extension and the IMD:<\/p>\n “<\/span><\/strong>We appreciate that CCCS accepted our alternative interim measures. On CCCS\u2019 request, we have agreed to extend the Uber app to\u00a07 May\u00a0to allow for a smoother transition time for riders and drivers. We trust that the CCCS\u2019 review takes into account a dynamic industry that is constantly evolving, highly competitive, and being disrupted by technology and new services. The interim measures should not have the unintended effect of hampering competition and restricting businesses that have already been investing in the country over the years.<\/p>\n Grab notes the CCCS’ objective of giving drivers choice, and is fully supportive of extending our platform to all taxi drivers, including ComfortDelGro drivers who are still constrained from picking up JustGrab jobs. Grab entered Singapore five years ago with minimal resources and the goal of enabling all taxi drivers to earn a better living using our platform. We recognise CCCS\u2019 commitment to preserving competition; all companies – no matter big or small, digital or traditional – are capable of innovation in a free market.<\/p>\n We’re proud to headquarter in Singapore, where the country\u2019s free market economy and policies enable businesses to compete and innovate vigorously to solve customer needs. We trust the government will continue to be pro-business in providing a path for startups to flourish and become sustainable businesses. We will work within the set constraints and continue to focus on building better products to compete, ensuring fairness for passengers and drivers, and cultivating the local tech talent pool through our regional R&D centre in Singapore.“<\/span><\/strong><\/p><\/blockquote>\n .<\/p>\n<\/p>\n
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Grab’s\u00a0plan to shutter\u00a0Uber’s\u00a0app quickly following\u00a0its merger deal in Southeast Asia\u00a0has hit another snag in Singapore where the ride-hailing firm has been forced to delay closing its rival’s service until May 7. This is the second time that Grab has pushed back the removal of Uber’s app in Singapore, which was initially scheduled for closure…<\/p>\n","protected":false},"author":2,"featured_media":10542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,47],"tags":[],"_links":{"self":[{"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/10770"}],"collection":[{"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/comments?post=10770"}],"version-history":[{"count":2,"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/10770\/revisions"}],"predecessor-version":[{"id":10772,"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/10770\/revisions\/10772"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/media\/10542"}],"wp:attachment":[{"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/media?parent=10770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/categories?post=10770"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/tags?post=10770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}