End the Grab monopoly, say PKR leaders
PKR MPs Wong Chen and Nurul Izzah Anwar say that while first-mover advantage is recognised, the government must move in after a while to spread the business.
PETALING JAYA: The country’s antitrust laws need to be reviewed in light of “monopolistic” practices by companies such as Grab, two PKR MPs said, with one even suggesting that the multibillion-dollar start-up should be broken up.
Speaking at a webinar today, Subang MP Wong Chen and Permatang Pauh MP Nurul Izzah Anwar said that while they appreciated the impact that platforms such as Grab have had in boosting the gig economy, they were concerned about the company’s dominance.
Wong said he was aware that companies such as Grab were able to capitalise on their first-mover advantage to create strong brand recognition and customer loyalty, but felt that the government should consider the dangers of monopoly.
Starting off as a ride-hailing firm in 2012, Grab has since diversified into digital payments and food delivery services and is now Southeast Asia’s most valuable start-up worth more than US$16 billion. It acquired the earlier ride-hailing firm Uber’s Southeast Asian operations in 2018.
“I understand the first-mover advantage. But after a few years, you really have to think ‘If they have dominated 70%, 80% of the market … That is monopolistic.’ That cannot be allowed to happen,” Wong said during a webinar he hosted titled Policy Monday: Labour Market Trends – Gig Economy.
“While we admire first-mover advantage, innovation and all that kind of thing … After some time, the government must come in after maybe five, 10 years and look at the landscape where one giant dominates the entire thing and say ‘No, we have to break it’.”
In 2019, the Malaysia Competition Commission (MyCC) proposed a fine of RM86.77 million for Grab for allegedly abusive transit media practices – with Grab, alongside subsidiaries Grabcar Sdn Bhd and Myteksi Sdn Bhd, going to court to challenge the proposal.
MyCC proposed the fine after Grab allegedly violated the Competition Act 2010 by imposing restrictive clauses on its drivers, with the company stating then that MyCC does not have the jurisdiction to impose such a penalty.
Grabcar, meanwhile, was sued for RM100 million by the Malaysian Association of Taxi, Rental Car, Limousine and Airport Taxi in January for allegedly creating unfair competition and denying its 10,000 members their livelihood.
Grab and its business partner have also run afoul of Indonesia’s antitrust watchdog, which announced more than US$3 million in fines last July after finding them guilty of breaking anti-monopoly laws.
“There are so many studies to showcase. When you’re talking about (antitrust) regulations, it’s not just Malaysians that are concerned,” said Nurul Izzah.
“I’m very supportive of Grab, but we also need to be cognisant of the limitations and monopolistic tendencies … ,” she said, adding that there were around 140 platforms providing gig and freelance opportunities in Malaysia as of last August.
Speaking at a webinar today, Subang MP Wong Chen and Permatang Pauh MP Nurul Izzah Anwar said that while they appreciated the impact that platforms such as Grab have had in boosting the gig economy, they were concerned about the company’s dominance.
Wong said he was aware that companies such as Grab were able to capitalise on their first-mover advantage to create strong brand recognition and customer loyalty, but felt that the government should consider the dangers of monopoly.
Starting off as a ride-hailing firm in 2012, Grab has since diversified into digital payments and food delivery services and is now Southeast Asia’s most valuable start-up worth more than US$16 billion. It acquired the earlier ride-hailing firm Uber’s Southeast Asian operations in 2018.
“I understand the first-mover advantage. But after a few years, you really have to think ‘If they have dominated 70%, 80% of the market … That is monopolistic.’ That cannot be allowed to happen,” Wong said during a webinar he hosted titled Policy Monday: Labour Market Trends – Gig Economy.
“While we admire first-mover advantage, innovation and all that kind of thing … After some time, the government must come in after maybe five, 10 years and look at the landscape where one giant dominates the entire thing and say ‘No, we have to break it’.”
In 2019, the Malaysia Competition Commission (MyCC) proposed a fine of RM86.77 million for Grab for allegedly abusive transit media practices – with Grab, alongside subsidiaries Grabcar Sdn Bhd and Myteksi Sdn Bhd, going to court to challenge the proposal.
MyCC proposed the fine after Grab allegedly violated the Competition Act 2010 by imposing restrictive clauses on its drivers, with the company stating then that MyCC does not have the jurisdiction to impose such a penalty.
Grabcar, meanwhile, was sued for RM100 million by the Malaysian Association of Taxi, Rental Car, Limousine and Airport Taxi in January for allegedly creating unfair competition and denying its 10,000 members their livelihood.
Grab and its business partner have also run afoul of Indonesia’s antitrust watchdog, which announced more than US$3 million in fines last July after finding them guilty of breaking anti-monopoly laws.
“There are so many studies to showcase. When you’re talking about (antitrust) regulations, it’s not just Malaysians that are concerned,” said Nurul Izzah.
“I’m very supportive of Grab, but we also need to be cognisant of the limitations and monopolistic tendencies … ,” she said, adding that there were around 140 platforms providing gig and freelance opportunities in Malaysia as of last August.
As I understand it, there is NO Grab monopoly, just the inability of others who have started Ride sharing businesses to grow their demand.
ReplyDelete.
There's Mula in my area, but few drivers and few takers.
That's markets and business la, government please don't interfere.
I will sokong the gomen grant Tony Fernandez a startup fund and lesen to start a rival to Grab. He can name it:
ReplyDeleteNow Everybody Can Tapau.
most taxi driver do multiple ride hailing apps. however i hv no idea how to stop grab to become dominant since they offer quite decent service with pretty reasonable pricing, relatively speaking. i was told by the langkawi taxi driver that also drive grab that taxi charge at least 50% more or double, its cater for some that dont use grab n foreigner. revert to nep taxi is the only way.
ReplyDeleteFormosa taxi services r the best ~ everybody, except grab car, can have a go if u have a strong green connections.
DeleteUber is limited to some city centres yet still subject to 'legalised' restrictions dye to the Yankee pressures.
Market competition is a misnomer in that f*cked island - subjecting to katak-ised demoNcratic interpretations.
green or blue taxi u gotta use meter, green or blue passenger u gotta fetch, green or blue destination u gotta go, see the diff?
Deleteuber cant compete, n they smart enough to do only niche on more than 4 passenger vehicle.
u sound as if ccpland got grab n uber.
Ain't u just fart about the many facades of the Formosa taxi services based on colours?
DeleteMfer, is that but altarized competition dogma been practiced in that f*cked island?
Over, grab won't dare touch China market bcoz they have been slaughtered clean & total by Didi Chuxing.
So instead both just hide as investors in Didi Chuxing!
In a move that effectively conceded defeat, uber bought a 17.7 per cent stake in Didi instead, while the Chinese firm invested $US1 billion in Uber.
So u only know ride-hailing services as in that f*cked island.
Moronic katak!
Back in 2014/2015 CCP imposed multiple rules to ensure no foreign Ride Sharing company could operate smoothly in CCP-land.
DeleteCapitalism with CCP characteristics.
F*cked katak-used lies!
DeleteUber ventured into china in 2013. In 2016 Uber fled China after surrendered a massive market and sold its $8 billion business Didi Chuxing less than a week after Chinese regulators legalized ride sharing in any capacity!
"Back in 2014/2015 CCP imposed multiple rules to ensure no foreign Ride Sharing company could operate smoothly in CCP-land."
Wakakakakaka… where did read that piece of shit? Or u just fabricate it out of yr f*cked mind!
Unable to compete, more so based on the famed free marketing principle. More so don't understand the local riders/users sentiments. Just want to impose that 'superior' americana taxi culture upon the locals.
Yet there r f*cked duckhead would still blame China!