What happens when Grab holds a monopoly in Southeast Asia?


If Uber’s biggest rival pulls out of Southeast Asia, will consumers and drivers have to accept any incentives Grab offers?

Is the service expensive?

Mohd Ilsa Rozlan uses Grab or Uber for his daily trips in Phnom Penh (Cambodia), where he works. Which carrier offers promotional code will decide which service you use for the day.

However, the news that Uber is preparing to sell its Southeast Asian operations to its biggest rival, Grab, has left Malaysia’s digital regulator concerned that consumers could lose out.

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Ilsa is not the only one worried about the lack of competition affecting the service Grab is offering to consumers.

If Grab takes over Uber’s operations in the region, it will have a monopoly on the ride-sharing market in Malaysia.

Malaysia Consumers Association (MCM) President Darshan Singh Dhillon told Free Malaysia Today that if Grab took over Uber’s operations in the region, it would have a monopoly in the ride-sharing market. Malaysia.

“If that happens, the relatively cheap service that Malaysians enjoy could become expensive, especially if our regular taxi service is excluded,” Darshan said.

The same goes for thousands of taxi drivers who have turned to work for Uber and Grab over the past few years. They said they are unable to compete with Uber and Grab due to their lower prices and less regulatory regulation.

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Darshan said MCM wants the government to encourage more car-sharing companies to participate in the industry through incentives or eliminating unnecessary legal barriers.

The government can also support traditional taxi companies and drivers by training them to adapt to the changing times and leverage technological advances to improve the service they provide.

He also questioned whether Grab’s takeover of Uber was approved by the Malaysian Competition Commission (MyCC). However, it is not clear if there is any regulatory body in the country that could prevent these moves by the Singapore-based company.

Grab will still face competition

For an Uber driver like Peter, taking over can be bad news, especially since he can’t be a Grab partner driver due to his ban.

“Most of the drivers I know choose to work for Uber and Grab, depending on the incentives they get. So if there is only one company, the driver will have to accept it. Any preferential period is given “.

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But if Uber pulls out of Southeast Asia, Grab, a car company with more than 2.1 million drivers in Singapore, Indonesia, Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia, will still face competition. war, economist Firdaos Rosli of the Institute for Strategic and International Studies (ISIS) said.

He added: “We already have a lot of taxi hailing apps on the market but whether these can become car-sharing apps is another question. If they want, they have to offer a lot, if not more than what Grab is offering its users.

The car-sharing market in Southeast Asia is rapidly expanding and is expected to reach $ 13.1 billion by 2025.

Firdaos, ISIS’s Regional Integration and Trade Manager, said that if Grab took over Uber, Grab would be the standard for all taxi services, be it traditional taxis or car-sharing services. “They will also be subject to public scrutiny,” he said.

Earlier, Bloomberg revealed that Uber was selling operations in Southeast Asia to Grab in exchange for a stake in the Singapore-based ride-hailing company. The car-sharing market in Southeast Asia is rapidly expanding and is expected to reach $ 13.1 billion by 2025.

Thai Binh / Free Malaysia Today
* Source: Investment bridge

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