Since ride-sharing service Grab took over Uber, fares have increased while service has deteriorated, the country’s antitrust watchdog said Monday, May 28.
The Philippine Competition Commission (PCC) revealed there was a “substantial lessening of competition” based on a survey that it commissioned as part of its review of the merger.
“Post-transaction prices of Grab indicate that prices are increasing, while quality of service is deteriorating, to the detriment of the riding public,” the PCC said.
In March, Grab acquired Uber’s Southeast Asian assets in exchange for the US-based company taking a 27.5% stake in Grab’s operations in the region. At the time, the PCC ordered that the ride-hailing companies suspend the deal until it had completed a review.
Uber had ceased operating in the country to comply with an order by the country’s transport regulator following the expiration of its license as a transportation network.
Based on its findings, the antitrust watchdog said the merger allowed Grab to control more than 90% of the ride-hailing market and that new entrants would not constrain the Southeast Asian company’s dominance of the market.
Full Content: Asian Review
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