CCCS Consults on Grab's Application to Impose a Platform Fee for its Ride-hailing Services in Singapore

[Nostalgia]

https://www.cccs.gov.sg/media-and-consultation/newsroom/media-releases/cccs-consults-grab-application-to-impose-platform-fee

 

1. The Competition and Consumer Commission of Singapore (“CCCS”) is inviting public feedback from 28 July to 11 August 2020, on an application by Grab[1] to impose a platform fee on riders for its ride-hailing services in Singapore (“the Application”). If granted, this will amount to a variation of the directions[2] issued by CCCS to Grab on 24 September 2018 (“the Directions”).

Background

2. On 24 September 2018, CCCS issued an Infringement Decision[3] (“ID”) against Grab and Uber (collectively, the “Parties”) in relation to the sale of Uber’s Southeast Asian business to Grab for a 27.5% stake in Grab in return (“Transaction”). CCCS found that the Transaction, completed on 26 March 2018, infringed section 54 of the Competition Act and had led to a substantial lessening of competition (“SLC”) in the provision of ride-hailing platform services in Singapore. Together with the ID, CCCS issued the Directions to the Parties to lessen the adverse impact of the Transaction on drivers and riders and to keep the market open and contestable.

3. Under the Directions, Grab is required to maintain its pre-Transaction pricing, pricing policies and product options (including driver commission rates and structures) for all its products in the ride-hailing platform services market.[4] Consequently, Grab is not allowed to change its pre-Transaction prices or products without prior approval from CCCS. However, Grab may apply to CCCS to vary or remove the Directions.[5]

Grab’s Application

4. Grab has applied to CCCS to vary the Directions to allow the imposition of a platform fee of S$0.30 (S$0.32 with GST) on each ride. Grab submitted that it invests heavily to provide both passengers and drivers with a safe and pleasant experience on its platform. Grab submitted that this is a practice that is in line with ride-hailing industry norm. Grab submitted that the S$0.30 platform fee per ride will enable Grab to maintain and enhance the various safety measures and cover the relevant operating costs. A third of the funds collected through the platform fee will be committed towards providing benefits for driver welfare.

Public Consultation

5. CCCS is seeking public feedback to assist in its assessment of Grab’s Application. In its assessment, CCCS will take into consideration the factors which are outlined in the Public Consultation Paper in Annex 1. The closing date for submissions of feedback to CCCS is 11 August 2020, 5 pm. If the submission or correspondence contains confidential information, please also provide CCCS with a non-confidential version of the submission or correspondence.

6. CCCS will determine how it should decide on Grab’s Application following the public consultation.

7. More information on the public consultation can be accessed and downloaded from the CCCS website at www.cccs.gov.sg under the section “Public Consultation”.

[Nostalgia]

[Soya]

SMLJ platform fee? If no platform, they can operate meh?

It's like SBS trying to impose a bus stop fee and claim it's worth paying paying coz bus will stop for us at a bus stop so that we don't hv to run after a bus or stand unsheltered in an overgrown grass patch full of snakes & frogs.....

Nuts

 

 

[Leo72]

22 minutes ago, Soya said:

SMLJ platform fee? If no platform, they can operate meh?

It's like SBS trying to impose a bus stop fee and claim it's worth paying paying coz bus will stop for us at a bus stop so that we don't hv to run after a bus or stand unsheltered in an overgrown grass patch full of snakes & frogs.....

Nuts

 

 

f afer imposing the platform fee and still cheaper than Taxi, people will just pay.

[Volvobrick]

Hope the fees are imposed and ridership /number of PHVs goes down. Less congestion for us drivers, less accidents, less wear and tear on the roads. Sappork! 

 

[ToyotaShuttle]

24 minutes ago, yishunite said:

Stupid morons allowed grab uber merger now all the wayang come out. End of the day same result. Well done 61%.

Don't need to be angry. Whether it is grab+uber or just grab alone, it is already much better than just letting the taxi companies operate their monopoly.

Whether you like the platform fee or not, you cannot dispute that grab has added competition into the market and created value for commuters.

[inlinesix]

1 hour ago, Soya said:

SMLJ platform fee? If no platform, they can operate meh?

It's like SBS trying to impose a bus stop fee and claim it's worth paying paying coz bus will stop for us at a bus stop so that we don't hv to run after a bus or stand unsheltered in an overgrown grass patch full of snakes & frogs.....

Nuts

Nowaday, all bus fare belongs to LTA.

[13177]

Need to pay extra $0.32 for each grab ride? 😠

[Mustank]

Haha don’t that’s this 

[badlammy]

Heng...I don't grab, grab food or grab pay.

[Soya]

1 hour ago, Leo72 said:

f afer imposing the platform fee and still cheaper than Taxi, people will just pay.

At peak hours, teksi sometimes cheaper and easier to get

 

[Kb27]

As a Grab driver, I'll say Grab is always full of bs.

During the CB, they claim to give drivers extra $10 a day, But only a limited number of drivers get it. I don't. They say I'm not qualified. I didn't do 200 trips for the last 3 months (before the virus hell break loose) to qualify. But they make big publicity of how they are suffering but still looking out for drivers welfare. bs

I only get $10 from LTA disbursed by Grab, it's not Grab money.

Now Grab removed all the incentives and replaced it by something I couldn't be bothered. Over a period of 3 months, a driver has to jump through hoops and whatnot. Then Grab will decide only the top 18,000 get something. If you're in 18,001 position, too bad you jump the hoops for nothing.

And so they always use "drivers welfare" name as an excuse.

The extra 32 cent charge is just to benefit Grab and nobody else.

[Jusnel]

Bloody blood sucker

Now they r the monopoly, they can say and do whatever they want 

[Angcheek]

Extra taxes ... 他妈死got share ? 😄

[ToyotaShuttle]

1 hour ago, Kb27 said:

As a Grab driver, I'll say Grab is always full of bs.

During the CB, they claim to give drivers extra $10 a day, But only a limited number of drivers get it. I don't. They say I'm not qualified. I didn't do 200 trips for the last 3 months (before the virus hell break loose) to qualify. But they make big publicity of how they are suffering but still looking out for drivers welfare. bs

I only get $10 from LTA disbursed by Grab, it's not Grab money.

Now Grab removed all the incentives and replaced it by something I couldn't be bothered. Over a period of 3 months, a driver has to jump through hoops and whatnot. Then Grab will decide only the top 18,000 get something. If you're in 18,001 position, too bad you jump the hoops for nothing.

And so they always use "drivers welfare" name as an excuse.

The extra 32 cent charge is just to benefit Grab and nobody else.

So cham ? do all the work to apply but they have no proper criteria to decide if you will or will not get it before hand?

[ToyotaShuttle]

1 hour ago, Jusnel said:

Bloody blood sucker

Now they r the monopoly, they can say and do whatever they want 

There's bus, mrt, the different taxi companies, Gojek, private chauffuer and many more options. 

Are they really a monopoly?

[Mcscot]

I am a Xiao Luo Luo (small fry in the bigger scheme of things) and a layperson but for Uber and Grab ... this was always their business model. All of us at some point benefitted from their "promo code" fares and they needed big pockets to keep giving "promo codes" until one of the big players bow out (in Singapore - Uber abandoned the market as I think our market was too small for their appetite!).

Once there is a dominant player, investors in these companies will be calling for profits and these companies will be controlling and dictating the market. I think all should vehemently object these platform fares ... 

IMHO

[Kangadrool]

10 hours ago, Kb27 said:

As a Grab driver, I'll say Grab is always full of bs.

During the CB, they claim to give drivers extra $10 a day, But only a limited number of drivers get it. I don't. They say I'm not qualified. I didn't do 200 trips for the last 3 months (before the virus hell break loose) to qualify. But they make big publicity of how they are suffering but still looking out for drivers welfare. bs

I only get $10 from LTA disbursed by Grab, it's not Grab money.

Now Grab removed all the incentives and replaced it by something I couldn't be bothered. Over a period of 3 months, a driver has to jump through hoops and whatnot. Then Grab will decide only the top 18,000 get something. If you're in 18,001 position, too bad you jump the hoops for nothing.

And so they always use "drivers welfare" name as an excuse.

The extra 32 cent charge is just to benefit Grab and nobody else.

They already get a cut of 30% of your fares and now SMLJ $0.32 platform fee still so desperado to collect from Grabbers? Oooooo there's nothing wrong to collect more $$$$

Edited July 29, 2020 by Kangadrool