CCCS levies a S$13M fine on ride-hailing giants Uber and Grab
Date: 2018-09-24   Author: Saipriya Iyer  Category: #news

CCCS levies a S$13M fine on ride-hailing giants Uber and Grab

The Competition and Consumer Commission of Singapore (CCCS) has reportedly fined a total of S$13 million to Uber and Grab over their merger, stating that the agreement has resulted in significant damage to competitors in the ride sharing market. Among the two companies, Grab was fined S$6.42 million while Uber was fined S$6.58 million, cites reliable sources.

Apparently, the CCCS revealed that it considered the nature, duration, the turnovers, and seriousness of the violation, along with mitigating factors of the companies, while levying the fines. Back in March, Uber sold its Southeast Asian business to Grab, for a 27.5 per cent stake in the latter, post which the CCCS said that it would start an investigation into whether the deal violated anti-monopoly laws.

After the investigation, CCCS purportedly highlighted various factors like Grab’s increase of its trip fares by 10 to 15 percent just after the acquisition deal. It also highlighted how Grab supposedly reduced the number of points earned by riders through its loyalty program GrabRewards and also reduced the frequency and number of driver promotions and incentives. The watchdog also highlighted the numerous complaints it received from riders and drivers on fares and commissions of the Singapore based firm.

According to reports, the watchdog ordered Grab to adjust its fare to match its pre-merger driver commission rates and pricing algorithm. The CCCS also ordered Uber to sell cars under its Lion City Rentals, a vehicle leasing business, to any competitors offering a reasonable price and restricted the U.S. based company to sell those vehicles to Grab without approval from regulators, claims experts familiar with the matter.

Toh Han Li, chief executive of CCCS, was quoted stating that mergers that significantly lower the competition are restricted and CCCS has taken action against the Uber-Grab merger as it eliminated Grab’s closest rival, causing harm to Singapore’s drivers and riders. He further stated that this step protects the interest of riders against immoderate increase in price and the interest of drivers against surge in commission they pay to Grab.



About Author


Saipriya Iyer

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

More from Saipriya


Post Recommendents

Automotive Hose Turbocharger Market Outlook, Strategies, Manufacturers, Countries, Type and Application, Global Forecast To 2026
Author: Ashwin Naphade

Market Study Report, LLC, has recently added a report on ' Automotive Hose Turbocharger market' which offers a comprehensive synopsis of revolving market valuation, market size, SWOT analysis, revenue estimation and geographical spectrum o...


Automotive Paint Tools and Equipment Market 2020 Analysis & Forecast to 2026 by Key Players, Share, Trend, Segmentation
Author: Ashwin Naphade

Market Study Report LLC delivers significant information and realistic data of the Global Automotive Paint Tools and Equipment Market via this newly added research in its database. The report presents a deep study of the market growth factors and ...


Specialty Peripheral Vascular Products Market Analysis with Key Players, Applications, Trends and Forecasts to 2026
Author: Ashwin Naphade

Market Study Report LLC adds a new report on Specialty Peripheral Vascular Products Market Share for 2020-2026. This report provides a succinct analysis of the market size, revenue forecast, and the regional landscape of this industry. The report ...