Singapore fines Uber and Grab for merger
Singapore competition watchdog fines Uber and Grab: Singapore’s Competition and Consumer Commission fined ride-hailing companies Uber and Grab with a combined USD 9.5 mn on Monday as their merger earlier this year was blamed for driving prices up, Reuters says. Effective fares on Grab rose 10-15% after Uber Technologies Inc sold its Southeast Asian business to regional rival Grab in March for a 27.5% stake. Uber said it may appeal the decision.
Our own competition watchdog is taking note: You can expect the Singapore ruling to enter the arsenal of the Egyptian Competition Authority (ECA), which has repeatedly warned Uber and regional rival Careem against merger talks. The two sides are in talks on a transaction that could be worth as much as USD 2-2.5 bn. The ECA had used a previous ruling against the Grab-Uber merger by the Singapore competition watchdog to warn Uber and Careem.
In other ride-hailing merger news,Careem has acquired Indian bus shuttle service app Commut Bloomberg reports. The report did not mention the size of the acquisition.