Evaluation of Grab's Proposed Acquisition of Trans-Cab for Anti-Competitive Practices

Sir, the Competition and Consumer Commission of Singapore (CCCS) has received Grab's notification of the proposed acquisition. CCCS will assess the impact of the proposed acquisition on competition and consult relevant stakeholders before reaching a decision on the matter.

Sir, thank you. Can I ask the Minister of State what will be the further actions taken with regard to this acquisition? For example, we all know that this acquisition is likely to have a great impact on the livelihood of about 100,000 taxi drivers and driver hirers.

So, did the Ministry conduct any study on what has been the impact of Grab's acquisition of Uber on fares, waiting time for commuters and the income of driver hirers and taxi drivers? That is the first question. Did the Ministry do any survey on all these things and what has been the impact? So, that will become a consideration in assessing this acquisition.

The second question is: given that Grab already controls 75% of the current private ride hailing market and we know that the taxi and PHP markets are actually like part and parcel of one another already as the development of the market continues. So, since Grab is already holding 75% of the market – of course, I may be jumping the gun a little bit – but does the Minister of State think that that will be taken into consideration very seriously by CCCS?

I thank the Member for his supplementary questions. Let me just share again and reiterate the point that CCCS is still assessing this and, so, we cannot comment on a specific case under consideration at this stage. What we can do is to share about the processes and that is what I will be doing shortly.

CCCS, for the Member's understanding, adopts a two-phase approach in evaluating merger applications that are made through the Competition Commission. And upon receipt of this complete application, CCCS' will carry out a phase one review which involves a quick assessment. This phase one is expected to be completed within 30 working days. The timeline is subject to suspension for a variety of reasons, for example, if the merger parties do not respond to CCCS' requests for information or provide documents which are needed to complete its assessment.

For merger situations that do not raise competition concerns, CCCS will issue a favourable decision at the end of the phase one review and, therefore, the merger can proceed without undue delay.

If during the phase one review CCCS is unable to conclude that the merger situation does not raise competition questions or concerns, it will provide the merger parties with a summary of its key concerns and then proceed to carry out a more detailed phase two review, which is expected to take 120 working days.

To the Member's questions about consultation and concerns, I want to assure him that information provided by third parties play an important role in CCCS' assessment of mergers. CCCS obtains relevant information from third parties, such as competitors and customers, via public consultation and by contacting them directly. CCCS, in this case, will be consulting on the proposed acquisition and the public will be able to provide feedback through this public consultation.

Sir, on the ground, we have received a lot of feedback or complaints by drivers or hirers and also from commuters about the condition of the point-to-point transport in Singapore. So, I would like to ask, based on the understanding of the Minister of State, what has been the trend of fares, waiting times and the drivers' or hirers' income over the last three to five years?

Sir, there are several Parliamentary Questions on this matter that have been filed and the Ministry of Transport (MOT) will be addressing them at a subsequent Sitting. Can I ask that the Member refer to those replies instead on the Point-to-Point Act?

I thank the Minister of State for his answer. I have two sets of supplementary questions on this. I have Clementi residents who have also been following the news. Some are consumers, some are drivers, and they are understandably wondering what it means moving forward.

Firstly, Mr Speaker, without prejudging the outcome, can I ask, based on previous CCCS assessments, whether CCCS may look at whether there will be substantial lessening of competition in just a single aggregate market or at the individual markets of taxis, private hire as well as the total aggregate point-to-point markets? That is my first question.

The second question would be – again without prejudging the outcome – has there been any situation where CCCS, as part of assessing potential economic benefits, even if there are substantial lessening of competition, is the tripartite lens applied so that if there are tripartite outcomes which are overall beneficial to workers and the functioning of the labour market and bargaining power between workers and firms, would that be a consideration as well, as part of the economic outcomes in the analysis?

Sir, I thank Dr Tan Wu Meng for his supplementary questions. It is worth saying that not all mergers, as I mentioned in my original answer, give rise to competition issues. Many, in fact, are pro-competitive or are competitively neutral.

To determine if a merger is anti-competitive, CCCS will assess whether the merger leads, as the Member alluded to, to a substantial lessening of competition.

With regard to this specific case, as I mentioned to the Member earlier on, we will be conducting a public consultation and I invite Members, as well as members of the public, to give their views on this particular merger.