GrabFood has carved a niche for itself in the food delivery services market, where it is in stiff competition with Foodpanda.
“We need to discuss this beyond the issue of monopoly per se. If rules have been broken, then Grab should be judged and punished. Fast forward to 2021, GrabFood has carved a niche for itself in the food delivery services market. It is in stiff competition with Foodpanda. There are other competitors as well.
All three sectors are regulated by the Competition Act 2010, which prohibits anti-competitive agreements and the abuse of dominant positions in the market. Speaking at a webinar with Permatang Pauh MP Nurul Izzah Anwar, who talked about Grab’s “monopolistic tendencies”, Wong proposed that the government step in and “break” companies once they see them dominating industries.Yeah said that among the disadvantages of breaking up a dominant player are that it may not be able to achieve the desired economies of scale and scope which allow it to maintain operational efficiencies and pass on cost-savings to consumers.
On a societal level, Grab has played a key role in providing jobs and accelerating the digitalisation of micro SMEs during the Covid-19 pandemic, with more than 2,500 new merchant partners onboard its platform during its Micro and SMEs e-commerce campaign from July to September last year.
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