CCI likely to put a roadblock in the merger of Uber and Ola in India

medhaj news 2 Apr 18 , 06:01:38 Business & Economy

The country’s competition watchdog, the Competition Commission of India (CCI), could put a roadblock in the merger of Uber and Ola in India, after the Competition Commission of Singapore (CCS) flagged up a similar case in the Southeast Asian ride-haling sector.Last week, the CCS initiated an investigation into the merger of Uber and Grab, saying this could create a monopoly in the region. It also asked both players to maintain their pre-transaction independent pricing.Japanese investment giant SoftBank, a common investor in both Ola and Uber, is learnt to be mediating the merger talks between the two companies in India, where both firms control around 95 per cent of the cab-hailing market. While the talks gathered pace after the announcement of the Uber-Grab merger, the question on who will control the merged entity is delaying the process.According to experts, the proposed merger in India will lead to a monopoly in the cab aggregation segment. If one considers the overall cab space, according to industry estimates, Ola controls 55 per cent of the market, while Uber holds 40 per cent.“The merger if it happens will likely need approval of the CCI. The CCI will, as in all such cases, have to examine the relevant markets and the combined market shares therein of the merging parties and other factors in order to decide if the merger can go ahead or not or can proceed with any modification”, said Vinod Dhall, expert on competition policy, and former head of the CCI.


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