Competition watchdog seeks feedback on Grab's proposed S$0.30 platform fee

THE Competition and Consumer Commission of Singapore (CCCS) is inviting public feedback on Grab's request to impose a platform fee on riders for its ride-hailing services in Singapore.

The proposed fee amounts to S$0.30 per ride, or S$0.32 with goods and services tax.

In its application to CCCS, Grab said the fee will enable it to maintain and enhance various safety measures, as well as cover relevant operating costs. A third of the funds collected will be committed towards providing benefits for driver welfare, according to Grab.

Grab noted that it "invests heavily" to provide passengers and drivers with a "safe and pleasant experience on its platform", and that the imposition of a platform fee will be in line with the industry norm.

Interested parties can provide feedback to assist in the commission's assessment of Grab's application, via email to CCCS_Feedback@cccs.gov.sg by Aug 11, 5pm.

In September 2018, the competition watchdog issued an infringement decision on the merger of ride-hailing giants Uber and Grab, and fined them more than S$13 million.

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Among other things, CCCS found that the sale of Uber's South-east Asian business to Grab in return for a 27.5 per cent stake in Grab had infringed on the Competition Act and led to a "substantial lessening of competition" in the provision of ride-hailing platform services in Singapore.

Together with the infringement decision, CCCS also directed both companies to lessen the adverse impact of the merger on drivers and riders, and to keep the market open and contestable.

Under these directions, Grab is not allowed to change its pre-merger pricing, pricing policies and product options (including driver commission rates and structures) for all its products in the ride-hailing platform services market, without prior approval from CCCS.

If granted, the levying of the proposed S$0.30 platform fee will amount to a variation of these directions.

CCCS will determine how it should decide on Grab's application following the public consultation.