Competition Commission to further examine ComfortDelGro-Uber alliance

The Competition Commission of Singapore says it has not been able to decide conclusively whether the tie-up between ComfortDelGro and Uber's Lion City Rentals is anti-competitive.
The Competition Commission of Singapore says it has not been able to decide conclusively whether the tie-up between ComfortDelGro and Uber's Lion City Rentals is anti-competitive.PHOTO: ST FILE

SINGAPORE - The Competition Commission of Singapore will embark on the second phase of its study of a proposed alliance between ComfortDelGro and Uber's Lion City Rentals, saying that it has not been able to decide conclusively whether the tie-up is anti-competitive.

In a statement on Monday (Feb 19), the commission listed several concerns.

These include whether the UberFlash ride-hailing service - which is already in operation - involves any coordination of pricing between competitors; and whether ComfortDelGro will continue offering its flat-fare service with "no surge pricing".

It will also examine if taxi and chauffeured private-hire car drivers are able to take jobs from multiple ride-hailing platforms and whether the variety of payment options for commuters will be reduced.

The Commission is also concerned if there will be a substantial lessening of competition in the industry, "given the various contractual and shareholding relationships between players, as well as potential consolidation in the industry".

It will also look into whether the alliance would in fact bring about economic efficiencies such as shorter waiting times for commuters.

The watchdog started scrutinising the tie-up in December.

 

To proceed with its further assessment of the proposed alliance, the commission has asked the two parties to submit further information by March 5.