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Grab-Uber deal sparks fears of price hike


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http://www.straitstimes.com/singapore/transport/grab-uber-deal-sparks-fears-of-price-hike

 

Grab-Uber deal sparks fears of price hike
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Consumers and industry watchers are raising concerns that Grab's acquisition of Uber's South-east Asian business will lead to higher fares.PHOTO: ST FILE

Published
Mar 26, 2018, 10:38 pm SGT
 

SINGAPORE - Consumers and industry watchers are raising concerns that ride-hailing firm Grab's acquisition of rival Uber's South-east Asian business will reduce competition and lead to higher fares.

Ms Zhang Bin Bin, who takes both Grab and Uber rides, is unsure how fares will change now that "competition is minimised".

"If prices increase or if they match regular taxi prices, I will probably go back to public transport," said the film-maker, 23.

Freelance photographer Robin Choo, 27, had the same concerns.

"If prices for rides booked through Grab were to rise, I think I will have reconsider my travel options," he said.

Drivers interviewed raised concerns about their incentives and commission rates.

Private-hire drivers pay about 20 per cent of each fare to their operators.

Mr Ken Tan, 45, is concerned about how the move might affect his earnings. While he has driven for both Uber and Grab, he said he was able to earn more driving for Uber due to the better driver incentives.

Drivers now no longer have the option of choosing another operator if they are dissatisfied with their current firm, he said.

Mr Thanaraj Suppiah, 36, who has been driving full-time for Uber since last June, said: "I will have to see how well Grab takes care of drivers."

Mr Ang Hin Kee, executive adviser to the National Taxi Association as well as the National Private Hire Vehicles Association, said consumers and drivers need more choices, not fewer.

Nonetheless, if the merger is approved here, he hopes that end users will be better off.

"With potentially lower cost of operations via lower staff overheads and less spending on advertisement, the new entity can focus on delivering better terms for drivers and commuters," he said.

"But if it infringes on commuter and driver interests, I hope the regulators can steer it back on track."

Singapore University of Social Sciences senior lecturer and transport economist Walter Theseira said regulators can do one of two things to ensure that the market remains equitable for all parties.

One is to have a dominant player which is well regulated. The other is to have multiple players and let natural competition keep them in check.

"My personal view is that there has to be first of all, evidence that market size leads to efficiency," he said. "Secondly, there must be an appropriate lever to ensure that an enlarged player does not abuse its power."

Meanwhile, consumers do not seem too worried that Grab - with its ambitions of becoming a major player in the food, payment and loan sectors - would have access to information on how they travel, eat and spend.

"With the Government's cashless drive, consumers like myself will have to face the fact that my data is being collected," Mr Choo said. "My concern lies with how secure my data is."

Said Ms Zhang: "I am quite indifferent to that... since many apps or even devices are already collecting such data."

Grab Singapore head Lim Kell Jay said: "We have always cared about our customers' well-being and as a start, we will immediately extend our free personal accident insurance policy to all new interested Uber drivers and riders who choose to be part of our platform.

"We expect our combined operations to create a better experience for our community of drivers and passengers... we expect to see shorter wait times and faster pick-ups. This would mean better productivity for our drivers, and better reliability for our passengers."

 

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Still not totally monopoly as Grab PHV still need to compete with Taxi but one thing for sure, the cheap cheap fare will be gone. The fare most likely will be lower than metered taxi fare by a little but not too much.

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How can they say it is a monopoly when comfort has their own app and it is rated very very very high on trip advisor. hahahaha

This will be one of the defend that Grab will use when meeting LTA and CCS.

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Turbocharged

This will be one of the defend that Grab will use when meeting LTA and CCS.

 

It will be the same, China got Taxi Companies and when Didi bought over Uber, they not only increase price, service is reduce and they increase the cost they charge to the drivers. Now it is harder to get Didi and drivers hide during peak hours at higher price.

 

Only thing to say is comfort app is competition but wonder how it will compete and keep cost low.

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I’m in hk now... work trip with a leg in protective boot...

 

Took a cab from airport to central.. 400hkd..

 

Uber is banned in hk...

 

Gahmen here make tough decisions to protect livelihood of locals...

 

We? PR can drive Uber liao... I hv yet to meet a local singlish speaker from 8 usages...

 

Ps.. it also helps to hv an MTR system that does not break down so much that ppl hv to cab so often...

Edited by SuPerBoRed
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I’m in hk now... work trip with a leg in protective boot...

 

Took a cab from airport to central.. 400hkd..

 

Uber is banned in hk...

 

Gahmen here make tough decisions to protect livelihood of locals...

 

We? PR can drive Uber liao... I hv yet to meet a local singlish speaker from 8 usages...

 

Ps.. it also helps to hv an MTR system that does not break down so much that ppl hv to cab so often...

 

 

i met many uber/grab driven by local, got ah beng, ah bang, sunny (indian), few female drivers. Occasionally have some chinese name but less than 10%.

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i met many uber/grab driven by local, got ah beng, ah bang, sunny (indian), few female drivers. Occasionally have some chinese name but less than 10%.

It helps I can speak in canto n bei jing accented mandarin... I didn’t guess they are not locals... they said so themselves.. some is work in sgp long liao.. got PR... but phv more lucrative.. some married over.. supplement hsehold income.. some day job is insurance agent etc... ps Malaysian Chinese a lot... two were cooks...

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It will be the same, China got Taxi Companies and when Didi bought over Uber, they not only increase price, service is reduce and they increase the cost they charge to the drivers. Now it is harder to get Didi and drivers hide during peak hours at higher price.

 

Only thing to say is comfort app is competition but wonder how it will compete and keep cost low.

In Beijing, I don't see a difference in service.

 

Most of the time I took 專車。

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I’m in hk now... work trip with a leg in protective boot...

 

Took a cab from airport to central.. 400hkd..

 

Uber is banned in hk...

 

Gahmen here make tough decisions to protect livelihood of locals...

 

We? PR can drive Uber liao... I hv yet to meet a local singlish speaker from 8 usages...

 

Ps.. it also helps to hv an MTR system that does not break down so much that ppl hv to cab so often...

Garmen is forced into corner by taxi operators. Taxi drivers protested in Central.

 

Taxi operators paid a lot of $$$ to get medallions. That's why HK taxi drivers pay a lot of $$$ to rent cabs. Every single cabs are being run 24/7.

 

Some more these taxi operators have to pay protection fee.

Edited by Davidtch
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Garmen is forced into corner by taxi operators. Taxi drivers protested in Central.

 

Taxi operators paid a lot of $$$ to get medallions. That's why HK taxi drivers pay a lot of $$$ to rent cabs. Every single cabs are being run 24/7.

 

Some more these taxi operators have to pay protection fee.

I was told the taxi license in HK like property and parking lot, can appreciate in value one, own a few then rent out liao can kiao kar yo LP [laugh]
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I was told the taxi license in HK like property and parking lot, can appreciate in value one, own a few then rent out liao can kiao kar yo LP [laugh]

That's why Taxi Operators so tua Kee lo
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Turbocharged

In Beijing, I don't see a difference in service.

 

Most of the time I took 專車。

But this is a class higher than the normal  快车 that we take. I am not very happy that these days when they have less drivers, they keep advertising that there are cars futher away and you just need to pay more to ask them to come pick you. Each time I see no cars and price increase, I will cancel it. Either wait for later when I and not in a rush or I will change to public transport or call my company driver as necessary if things are urgent.

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I’m in hk now... work trip with a leg in protective boot...

 

Took a cab from airport to central.. 400hkd..

 

Uber is banned in hk...

 

Gahmen here make tough decisions to protect livelihood of locals...

 

We? PR can drive Uber liao... I hv yet to meet a local singlish speaker from 8 usages...

 

Ps.. it also helps to hv an MTR system that does not break down so much that ppl hv to cab so often...

So there is no PHV in hk at all?

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