Competition watchdog calls for public feedback on Grab's application to impose platform fee

Competition and Consumer Commission of Singapore (CCCS) is inviting public feedback on an application by Grab to impose a platform fee on riders for its ride-hailing services in Singapore. 

The feedback window will run from July 28 to August 11.

Grab has applied to CCCS to allow the imposition of a platform fee of SGD 0.30 on each ride, stating that this is a practice that is in line with ride-hailing industry norm. The company also added that the platform fee per ride will enable it to maintain and enhance the various safety measures and cover the relevant operating costs.

A third of the funds collected through the platform fee will be committed towards providing benefits for driver welfare.

Photo courtesy: Grab
Photo courtesy: Grab

Background

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

The transaction, completed on March 26, 2018, was found to have infringed section 54 of the Competition Act and had led to a substantial lessening of competition in the provision of ride-hailing platform services in Singapore.

To keep the market open and contestable, CCCS has required that Grab maintains its pre-transaction pricing, pricing policies and product options (including driver commission rates and structures) for all its products in the ride-hailing platform services market.

Consequently, Grab is not allowed to change its pre-transaction prices or products without prior approval from CCCS. 

Author
CtoI News Desk
CtoI News Desk – CtoI

Singapore-headquartered online media company targeting Indian Diaspora across Singapore, US, UK and Dubai. Connected to India covers developments around Indians abroad, informing, engaging and entertaining its audiences.

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