Grab Faces Extended Review of Trans-Cab Acquisition in Singapore

• Singapore regulator extends review of Grab’s proposed acquisition of Trans-Cab.
• CCCS rejected Grab’s commitments to address competition issues from the deal.
• Approval challenges ahead given CCCS’ tough stance on tech mergers.

Acquisition of Trans-Cab under scrutiny

Singapore’s Competition and Consumer Commission (CCCS) will undertake an in-depth review of Grab’s proposed acquisition of local taxi operator Trans-Cab.

The regulator rejected Grab’s initial commitment proposals to address competition concerns.

Concerns and issues raised by CCCS

CCCS worries the deal may allow Grab to leverage Trans-Cab’s fleet to promote its platform over rivals. It also found Grab’s proposed 2-year duration for commitments insufficient to alter market dynamics permanently.

Furthermore, CCCS felt Grab’s suggested self-monitoring mechanism was inadequate.

Future implications

This phase-two review follows CCCS blocking Grab’s acquisition of Uber’s Southeast Asia operations in 2018, resulting in nearly $10 million in fines after a six-month investigation.

Much like the Uber deal, taking over Trans-Cab’s 2,200 taxis could extend Grab’s dominance in ride-hailing.

Grab may submit revised commitments during the review to ease CCCS’ concerns.

However, the regulator’s strong stance suggests securing prompt approval will prove challenging without substantial concessions.

Going forward, technology mergers in Singapore will likely face heightened scrutiny, especially involving firms with strong market positions like Grab.