The competition watchdog will assess if this partnership will prevent, restrict or distort competition in the market, and that if any entity will abuse their dominant position

The Competition Commission of Singapore (CCS) is assessing to see if the proposed merger between land transportation company ComfortDelGro and Uber‘s subsidiary Lion City Holdings would result in a substantial lessening of competition within the city-state.

The competition watchdog is also seeking public feedback on the deal, and holding a public consultation from December 21 to January 8 next year.

In a press release issued on Thursday, the CCS said the car rental market is extremely competitive, with a large number of companies of different sizes and business models playing in Singapore. The commission will assess if the ComfortDelGro-Lion City Holdings partnership will prevent, restrict or distort competition, and that if any entity will abuse their dominant position.

On December 8, SGX-listed land transportation company ComfortDelGro signed a deal to acquire a 51 per cent stake in Lion City Holdings, for about S$295 million (US$218 million).

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Lion City Holdings is the operator of Lion City Rentals (LCR), which has a fleet of around 14,000 vehicles.

Upon completion of the transaction, LCR will be able to benefit from ComfortDelGro’s fleet management and operations. 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 joint venture will also help the two companies leverage each other’s operational and technological excellence. The move will establish a multi-dimensional, personalised mobility operator, encompassing both taxi and private hire vehicles (PHVs), and providing a wide range of local transport options in an increasingly competitive environment.

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