KUALA LUMPUR: Malaysia is looking into the risk of monopoly in the ride-hailing market following the merger of Grab and Uber, the transport ministry said on Wednesday (Jul 11).
Uber Technologies sold its Southeast Asian business to bigger regional rival Grab in March, in exchange for a stake in the Singapore-based firm.
“The government is studying the e-hailing service monopoly risk after the merger between Grab and Uber through the Malaysia Competition Commission,” the ministry said in a statement, adding that e-hailing services in the country will be regulated from Thursday.
From Jul 12, Grab and all other ride-hailing services will be subject to the same licensing conditions as taxi drivers in Malaysia. This means e-hailing drivers, like cabbies, will need to go through regular car inspections and health checks.
In Singapore, the Grab-Uber deal has also come under scrutiny by the competition watchdog.
The Competition and Consumer Commission of Singapore said earlier this month that the merger has led to a “substantial lessening of competition” in ride-hailing platforms, made it harder for new competitors to enter the market and resulted in higher prices.