Singapore’s competition watchdog lifts restrictions on Grab

Written by Ursula Florene Published on 

Grab said it will roll out the platform fee in the next few months.

The Competition and Consumer Commission of Singapore (CCCS) on Friday officially lifted restrictions on ride-hailing platform Grab, allowing the company to change pricing policies and driver commission rates.

According to a statement, the commission removed a requirement that was in place since the country introduced its “point-to-point (P2P) transport” regulatory framework on October 30, ensuring the transparency of P2P fares and allowing drivers to work for different operators.

Singapore already has a number of ride-hailing service providers equipped with Ride-hail Service Operator License (RSOL), namely Gojek and Grab, taxi company ComfortDelgro, Tada Mobility, and Ryde.

In September 2018, the CCCS imposed a freeze on Grab’s pricing algorithm and driver commission rate following its merger with Uber in March of the same year. Both companies were also fined a total of SGD 13 million (USD 9.5 million), as the merger was deemed to be ‘anti-competitive.’

In July this year, Grab submitted an application for a platform fee. If approved, the firm will charge an extra SGD 0.32 cents after GST for each ride.

With the change in regulation, the CCCS “will no longer issue a decision on the application.” Grab was the only ride-hailing company in Singapore who hasn’t applied a platform fee due to the restriction.

In a statement, Grab said that it will help them to move faster in introducing new services “in a timely manner”. However, considering the current economic situation, the company will not change its pricing structure and policies at least for the next six months.

Grab said it will roll out the platform fee “in the next few months”The company plans to use the money to double down on safety measures such as driver training and insurance. One third of the sum will go to driver welfare support initiatives, such as scholarships.


You might like these

  • News

    Tata Group close to buying 80% stake in e-grocer BigBasket


    Moulishree Srivastava

    02 Dec 2020    08:43 AM

KrASIA InsightsKrASIA Insights

  • In the next 18 to 24 months, ProfitBoard Ventures plans to invest in 100 startups across India and Southeast Asia through its USD 100 million fund.


    Singapore startups should experiment in India, VC says

    By Moulishree Srivastava

    30 Nov 202001:05 AM

Most PopularMost Popular

See All