15/04/2018 11:41 GMT+7 Email Print Like 0

Singapore sets interim measures for Grab-Uber merger

The Competition and Consumer Commission of Singapore (CCCS) said on April 13 that it has imposed several interim measures on Grab’s acquisition of Uber until competent agencies finish their investigation into the deal.

Earlier on March 30, Singapore announced its examination on the takeover for fear of Grab’s monopoly on ride-hailing service which will affect the interest of customers and drivers.

The measures take effect immediately, requiring the two companies to stop merger activity in Singapore during the time of investigation. They must remain price and service policies and are not allowed to share customer and driver data.

The Uber platform will continue to be available in Singapore until May 7 instead of the previously stipulated April 14 to allow a smoother transition time for riders and drivers.

Lim Kell Jay, head of Grab Singapore, said that the temporary measures should not create barriers to competition and limit the development of businesses landing investment in Singapore in the past years.

According to the deal reached on March 26, Uber sold its Southeast Asian business to its rival Grab, marking the US-based company’s second retreat from the Asian market. Uber gets a 27.5 stake in Grab, which was last valued at 6 million USD after a financing round in July.

Grab will take over Uber’s operation and assets in eight Southeast Asian countries while expanding food delivery services.