If Uber and Grab merge, it's commuters who lose
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IT'S likely business as usual for now for Singapore-based ride-hailing company Grab - even after Monday's baffling announcement of Uber China's sale to arch foe Didi Chuxing (China's dominant ride-hailing firm) in a deal valuing Uber China at US$7 billion (more than triple the US$2 billion Uber has invested in China since 2013) and the combined company at US$35 billion.
The Uber China-Didi news only points to a tech startup world in constant shift, where anything can happen. Among scenarios still up in the air, higher-valued Uber may merge with Grab to own the South-east Asian market (or roads), or even pick up Grab, if the price is right.
Should either scenario materialise, consumers here will be furious. Since the advent of ride-hailing services in Singapore (most, in fact, originated as taxi-booking apps), consumers have benefited from a contested market. Competition was so keen that Hailo and Easy Taxi had to pull out, and surviving players Uber and Grab have had to slash fares, dangle more incentives, and constantly innovate.
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