Commentary: Could Trans-cab merger and rumoured foodpanda buyout spell trouble for Grab customers?

Grab has announced plans to acquire Singapore's third-largest taxi operator Trans-cab. Whether you’re a Grab user or not, a series of developments related to the company has become the talk of the town - from the proposedAt first blush, it might seem like these acquisition decisions are connected - the self-styled “super-app” trying to increase market share by gobbling up competitors in the ride-hailing and food delivery sectors. In theory, decreased competition could lead to higher prices.

How about concerns of a potential monopoly? ComfortDelGro remains a formidable competitor for Grab in Singapore, with 64 per cent market share compared to Trans-cab’s 15 per cent. The LTA’s point-to-point transport regulatory framework also does not allow ride-hail operators to prevent drivers from using other platforms.

Shutting down is not an ideal outcome for everyone involved - employees, F&B establishments, riders and customers. There At this juncture, Grab's game plan seems clear: Pursue discipline and profitability. Boring, but necessary. Just look at the example of Meituan, which has more than 70 per cent of food delivery service market share in China. It has been under constant regulatory scrutiny to ensure that platform companies maintain a healthy ecosystem for customersBut even without regulators, Meituan actually found it hard to raise commissions and prices in China.

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Source: ChannelNewsAsia - 🏆 6. / 66 Read more »