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Proposed Collaboration between ComfortDelGro Corporation Limited and Uber Technologies, Inc.

 

Reference:

CCS 400/007/17

Notifying Parties:

ComfortDelGro Corporation Limited; Uber Technologies, Inc.

Notifying Date:

18 December 2017

Summary of transaction:

The Parties to the agreement which is the subject of the Application are:

(a)          Uber B.V. (“Uber”);

(b)          Lion City Rentals Pte. Ltd.;

(c)          ComfortDelGro Corporation Limited (“CDG”);

(d)          Comfort Transportation Pte Ltd; and

(e)          CityCab Pte Ltd.

CityCab Pte Ltd, together with ComfortDelGro Corporation Limited and Comfort Transportation Pte Ltd (“Comfort”) is collectively known as (“CDG TAXI”).

This notification relates to the proposed strategic alliance as set out in the Commercial Collaboration Agreement dated 8 December 2017 between Uber and CDG TAXI (the “Proposed Collaboration”).

The Proposed Collaboration envisages the integration of Uber and CDG TAXI’s smartphone mobile applications and the launch of “uberFLASH”. Through the latter’s introduction, consumers will be able to order CDG TAXI’s taxis via the Uber App and Uber will use its proprietary technology to dispatch the closest available taxi or chauffeured private hire car (“CPHC”). “uberPOOL” will also be available on the CDG’s ride-booking app as part of the Proposed Collaboration. The Proposed Collaboration will not cover CDG TAXI’s core street hail business (except under very limited circumstances).

The Proposed Collaboration takes place against the backdrop of a complete transformation of the intra-city transportation sector and (by extension) the traditional taxi business in Singapore as the result of disruptive innovation. New entrants such as Uber and Grab have harnessed the power of new technologies to challenge incumbent transportation providers. The Proposed Collaboration harnesses the power of digital technology and leverages on the Applicants’ complementary skill sets to offer more efficient transportation services to consumers in Singapore while retaining competition between them. In so doing, it will enhance and accelerate the disruptive innovation the Applicants are bringing to the marketplace in a way that is fundamentally pro-competitive.

Overall, the Applicants submit that the Proposed Collaboration does not raise competition concerns under either sections 34 or 47 of the Competition Act.

The Proposed Collaboration relates primarily to the provision of booking services for intra-city transport services to the Singapore public. Specifically, the Proposed Collaboration is a limited cooperation between the Parties, which will allow users to connect with participating taxis or CPHC drivers via an integrated mobile application.

Amongst other things, the Proposed Collaboration involves a combining of fleet resources of both CDG and Uber to efficiently and effectively cater to the transportation needs of users of intra-city transportation services in Singapore.

 

Status:

The Parties withdrew their Application on 25 May 2018, notifying CCCS that they had terminated the Commercial Collaboration Agreement.

Updated Date

Last Updated on 13 August 2018