SINGAPORE, July 27 — Pillorying the competition watchdog’s "very narrow” view of what constituted competition and its proposal to remove exclusivity arrangements as a "double standard”, Grab today disagreed with the watchdog’s assessment of its takeover of Uber’s regional business.

In response to TODAY’s queries on its submission to the Competition and Consumer Commission of Singapore (CCCS) yesterday, the ride-hailing giant called for a broader definition of competition in the point-to-point transport sector. It said it explained in its written response to the CCCS why it believed some of the watchdog’s proposed measures were "unwarranted”.

Earlier this month, the CCCS ruled provisionally that the sale of Uber’s South-east Asia operations to Grab in March had led to a "substantial lessening of competition” and price hikes for Grab rides.

It also proposed remedies to restore competition in the market. These include removing exclusivity obligations and lock-in periods for drivers, as well as maintaining Grab’s pre-merger pricing algorithm and commission rates.

Today, Grab told TODAY that the watchdog saw it only as a ride-hailing and taxi-booking platform, passing over the fact that many commuters still get on cabs via taxi stands and on the kerbside, for instance. Instead, the CCCS’ definitions of the market should reflect consumer choices and commuting patterns, the company noted.

Riders, Grab added, typically compare prices between the various point-to-point transport services — be they on-demand private-hire cars or taxis, or cabs they hail on the streets — before they decide on a mode of transport.

It also called out the commission’s "one-sided imposition of exclusivity conditions”. The CCCS had proposed that Grab remove all its exclusivity arrangements with its taxi and private-hire car fleet partners here to widen choices for drivers and riders, and improve market contestability.

But Grab noted that allowing other players and new entrants to continue or strike exclusivity arrangements with drivers, taxi operators and rental fleet partners was a "double standard” that went against the "spirit of increasing choices for drivers and riders”. Only if exclusivity standards are lifted and prevented industry-wide can drivers exercise "maximum choice”, the company said. 

Grab pointed out that it had earlier voluntarily proposed lifting its exclusivity arrangements, provided that this was applied evenly across the industry. "Current market realities unfortunately do not reflect this. For instance, taxi operators are still able to restrict their drivers’ ability to receive fixed-fare jobs on other platforms,” the firm added.

The CCCS had also pointed out that the merged Grab-Uber entity was "likely able to increase prices and has, in fact, done so since the completion of the transaction”, referring to fares which excluded rider promotions and driver incentives. The commission also noted the potential for Grab to raise fares and drivers’ commission fees without sufficient competition.

Grab clarified that it neither raised fares nor driver commissions. As part of the CCCS’ interim measures imposed in April to keep the market open and contestable, Grab said it was required to send weekly reports of its base fares and surge factors to the commission which showed that these "remained the same since the transaction”.

In its representation, Grab also voluntarily proposed extra measures to work with the CCCS and improve on its proposed remedies. It also put forward "reasonable” conditions under which the commission could lift those remedies. While it did not disclose what these conditions were owing to confidentiality, Grab said that they would allow it to have the "flexibility to innovate its existing services and pricing structures to meet the interests of riders and drivers, and to offer new ways of working with its partners to compete”.

"While we don’t agree with some of the measures in the CCCS’ proposed infringement decision, we are committed to working with the CCCS to improve upon its proposed remedies to ensure a vibrant and dynamic transport sector,” head of Grab Singapore Lim Kell Jay said.

"Today’s transport sector is fiercely competitive with numerous public and private transportation choices for consumers. We believe a level playing field where participants compete fairly to provide innovative services and better user experiences will benefit consumers and drivers in the long run.”

Responding to TODAY’s enquiries yesterday evening, the CCCS confirmed it had received Grab and Uber’s representations. "The CCCS will make its final decision after careful consideration of the involved parties’ representations, feedback on the proposed remedies as well as all available information and evidence,” a spokesperson for the commission said.

When contacted, Uber did not respond to queries and referred TODAY to Grab’s communications team. — TODAY