Grab SG abandons acquisition of Trans-cab

Grab Singapore and Trans-cab are no longer proceeding with its proposed acquisition.

According to the Competition and Consumer Commission Singapore (CCCS), both parties have withdrawn their application for a decision. 

"With the termination of the proposed acquisition, the parties have withdrawn their application to CCCS for a decision, and CCCS has accordingly ended its assessment of the proposed acquisition," said the CCCS in a statement seen by MARKETING-INTERACTIVE. 

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It added that Grab and Trans-cab “expressed their respect for the regulatory process and their appreciation to CCCS for the thorough review”.

The CCCS also said that it notes Grab's commitment to operating in compliance with competition laws and their intention to contribute positively to the competitive landscape in Singapore.

"The CCCS encourages businesses with acquisition plans to engage CCCS at an early stage of the process if they assess that their plans are likely to raise competition concerns," it said. 

This comes after the CCCS said Grab's plans to buy Trans-cab will "significantly weaken" competition by depriving them of an important source of drivers earlier in July this year. 

It said the acquisition is likely to entrench and strengthen Grab's already dominant position in the ride-hail platform market and infringes the law that prohibits anti-competitive mergers. 

The merger is also expected to result in a greater degree of “stickiness” of Trans-cab drivers to Grab’s ride-hail platform and a potential reduction in usage of rival ride-hail platforms, said CCCS.

News of Grab's plans to acquire Trans-cab was first announced in July last year.  Grab said that it is to acquire 100% of the shares in Trans-cab. The acquisition also included Trans-cab’s taxi and car rental business, maintenance workshop, and fuel pump operations. 

Following which, Grab planned to launch an enhanced Grab Driver application that will be integrated with the mobile display units in Trans-cab taxis. The app will enable Trans-cab taxi drivers to manage their earnings and receive bookings from the Grab platform as well as Trans-cab’s existing call centre, all through a single platform

“Consumer behaviours have shifted, and we’ve recognised for some time the need to digitise the business and ensure our taxi drivers can continue to be competitive. We are confident this deal protects their future,” said Jasmine Tan, general manager of Trans-cab back in 2023. 

“Grab’s industry-leading tech will help our taxi drivers drive more productively and safely while serving their passengers better. We know that Grab cares deeply about their driver-partners, just as we do. We are entering this deal with full assurance that Grab will do their best to safeguard the livelihoods of our taxi drivers," said Tan. 

Photo courtesy of nighteye/flickr

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