,Singapore
2 views

Grab set to impose platform fee on ride-hailing services

The new P2P regulatory framework leaves fare levels to be determined by market forces.

Grab may impose a platform free on all ride-hailing services in Singapore in the near future following the lifting of its restrictions imposed two years ago.

In an statement, the Competition and Consumer Commission Singapore (CCCS) revealed that with the new P2P regulatory framework having taken effect on 30 October, they have released the directions imposed on Grab following its infringement of the Competition Act.

The new framework leaves fare levels to be determined by market forces, amongst other things.

With this new framework in place and with directions having lifted Grab—which had earlier submitted an application to CCCS to impose a platform fee for its ride-hailing services in Singapore—there is no need to wait for a decision on its application to impose a platform fee.

“With a sectoral regulatory framework now in place, CCCS considers it timely to release the directions imposed on Grab as the issues identified are more appropriately considered and addressed within the context of the sectoral regulatory framework,” the competition watchdog said.

The new framework also ensures that all licensed ride hailing operators cannot prevent their drivers from driving for other operators.

On 24 September 2018, CCCS issued an Infringement Decision against Grab and Uber in relation to the sale of Uber’s Southeast Asian business to Grab for a 27.5% stake in Grab in return.

CCCS had found that the transaction, which was completed on 26 March 2018, infringed section 54 of the Competition Act.

Together with the Infringement Decision, CCCS issued the directions to the Grab and Uber in order to lessen the adverse impact of the transaction on drivers and riders, and to keep the market open and contestable.

The directions sought to maintain Grab’s pre-transaction pricing, pricing policies and product options in the ride-hailing platform services market and to remove all exclusivity obligations imposed by Grab on drivers and taxi fleets in Singapore.

Get Singapore Business Review in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

This is the last trading day before the ghost month.
Its revenue also rose 23.4% YoY to. US$2,262.4m in the same period. 
It is expected to be ready for launch in H2 2022.
Encouraged by vaccinations, more Singaporeans plan to travel in the next three months.
The amendments include higher penalties for erring property agencies or agents. 
The centre aims to spearhead Singapore’s maritime industry’s energy transition.
However, PropertyGuru’s data showed continued confidence amongst sellers.
The system enables employees to have test results in as fast as 60 seconds.
COVID-19 disruptions continue to cause delays in its projects.
Its underlying profit of $832.2m is still 17% below pre-COVID levels.
The airline saw a net loss of $1.12b in the same period last year.
All of its key businesses were profitable in the first six months of the year.
Singtel, Keppel Corp, and OCBC Bank led the Straits Times Index on 29 July.