Singapore's competition watchdog asks public feedback on proposed ComfortDelGro-Uber deal

ComfortDelGro's taxi business posted a 10.7% decline in revenues. ComfortDelGro

The Competition Commission of Singapore (CCS) is asking public for their feedback on the proposed collaboration between ComfortDelGro and Uber Technologies.

Singapore's largest taxi company ComfortDelGro, earlier this month entered into an agreement with U.S.-based ride-hailing firm Uber to manage its fleet of vehicles and booking software solutions in Singapore.

The proposed deal would see would see ComfortDelGro buying a 51 percent stake in Uber's car rental unit in Singapore, Lion City Holdings. The deal, valued at about S$642 million, is subject to regulatory approval.

Through the partnership, ComfortDelGro will become a multi-dimensional personalised mobility operator providing a broader range of services to consumers, the company said.

It will also create a path for ComfortDelGro's taxi drivers to receive ride requests on the Uber driver app, thereby increasing their potential earnings while providing users of the Uber app an opportunity to directly book a ComfortDelGro taxi.

"The rental car market is extremely competitive, in view of the presence of a
large number of existing competitors in the market," CCS said in a statement on Thursday.

CCS said it is assessing the proposed acquisition to see if the merger would result in a substantial lessening of competition within any market in Singapore, the competition watchdog said.

The governing body would also assess the proposed agreement on aspects that prevent, restrict or distort competition within Singapore and the abuse of a dominant position in any market in Singapore by an entity respectively.