Grab-Uber merger will not affect fares, says minister

Grab to formally offer suitable positions to the affected 80 Uber employees in Malaysia.

PUTRAJAYA: Ride-hailing service provider, Grab, has given an assurance that the Grab and Uber merger exercise will not affect the fares, according to Minister in the Prime Minister’s Department Nancy Shukri.

“The government can take action against Grab if it is found to have raised the fares following the merger of Grab and Uber in Southeast Asia,” she said in a statement today.

Nancy, who had a meeting with Grab yesterday, said the government would consider taking legal action under the Competition Act 2010 to prevent any monopolistic position and pacts by large enterprises in manipulating the price of goods and services.

On allegations that Uber employees were adversely affected by the merger exercise, Nancy said she was informed that their temporary lay-off was in place to allow Grab to formally offer suitable positions to the affected Uber employees.

According to the minister, Uber employees were currently placed on paid leave for the next three months with medical benefits.

This is to give time for Grab to find new roles for them.

There are 80 Uber employees in Malaysia.

Yesterday, Uber Technologies Inc agreed to sell its Southeast Asian operations to Grab, withdrawing from yet another fast-growing region to end a war of attrition with a fierce local rival.

It was reported that under the agreement, Grab would acquire all of Uber’s operations in a region of 620 million people, including food delivery service UberEats.

Currently, Grab offers its services in Singapore, Indonesia, Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia.

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