Transport

Grab Agrees To Pay $6.42 Million Fine, Uber Decides To Appeal

 

Grab Will Pay Fine & Prep For Go-Jek’s Arrival

Grab has agreed to pay their share of an anti-competition penalty slapped upon them by the Competition and Consumer Commission of Singapore (CCCS).

Uber, however, will be putting forth an appeal regarding their share of the fine — all $6.58 million of it.

Collectively, ride-hailing firms Grab and Uber were fined $13 million, after Grab’s intended takeover of Uber’s regional operations was deemed “anti-competitive”.

Grab doesn’t want matter to “drag on”

The Straits Times reported on Monday (22 Oct) that although Grab disagreed with “parts of the commission’s findings”, they didn’t want the matter to “drag on”.

For now, they will “adhere to all the directions set out”, and are “glad this whole episode is over” so they can focus on “serving their customers” wholeheartedly again.

Uber seeks expert help

Uber doesn’t seem to be going down without a fight.

After seeking “extensive expert opinion”, Uber’s decided to appeal CCCS’ decision.

As new stakeholders in Grab, Uber states that they’ll be making an independent move “as a matter of principle”.

 

The main point of contention here is that Uber doesn’t think their “transaction with Grab led to a substantial lessening of competition” in Singapore, or was an attempt to “intentionally breach the law”.

Uber maintains that CCCS didn’t take into account the “realities of market conditions”, and had an “overly narrow” definition of the market.

CCCS strikes back

CCCS clarifies that they conducted a 6-month-long investigation into the affair. A market survey was also done on consumers to see if they considered Grab or Uber a fair substitute for street-hailing taxis.

To decide on the hefty $13 million fine, CCCS weighed the duration, seriousness of the breach, and Grab and Uber’s financial turnovers. They also considered if the parties involved were cooperative.

Competition’s heating up

Grab shares that the hefty fine is “no small sum“, but will not “impact…daily operations”.

Perhaps Go-Jek’s impending arrival has put a lot of things in perspective for the industry giant.

Grab acknowledged that they will be pushed to remain relevant to their fans, with Go-Jek’s anticipated entry to our market.

Do you think Uber has a case against CCCS? Or should they just follow Grab’s example and cough up the cash?

In the meantime, we honestly can’t wait for Go-Jek to heat up the competition on our shores.

Get onboard the Go-Jek hype here:

 

Featured image from Bukalapak.

The Must Share News Team

Teamwork makes the dream work.

Recent Posts

Customer served paper-thin salmon in S$8 set from food court in Suntec City

The salmon had become too thin because it "exercised too much", a netizen joked.

24 Dec 2024, 4:01 am

‘Black Monday for MRT Circle Line’: Commuter complains of large crowds at HarbourFront

A disruption occurred on the Circle Line about four hours later on the same day.

24 Dec 2024, 2:30 am

S’porean man killed by gas explosion in Italy was brother of food critic KF Seetoh

Mr Seetoh Kwok Meng was the "most jovial" among his siblings, said Mr KF Seetoh.

24 Dec 2024, 1:05 am

Food delivery rider allegedly stabbed in Marsiling, 21-year-old man arrested

The customer wanted to pay in cash only and rejected the rider's request to transfer…

24 Dec 2024, 12:15 am

Underage teen in S’pore buries stillborn in house yard, police digs up bones during investigation

The coroner said this was the first case of its kind he had encountered in…

23 Dec 2024, 7:05 pm

M’sia Airlines grounds new Airbus just days after maiden flight, cites technical issues

The brand-new jet suffered a series of technical issues since its first-ever flight on 19…

23 Dec 2024, 6:17 pm