Written Reply by Minister for Transport Khaw Boon Wan to Parliamentary Question on Impact of Grab-Uber Proposed Takeover

Ms Joan Pereira asked the Minister for Transport following the Grab-Uber proposed takeover

a.     whether many people will be out of a job as a result of this deal;

b.     if so, how many people will be so affected and what is being done to help these workers; and

c.     what is the impact of this on the overall public transport service.

Reply by Minister for Transport Khaw Boon Wan:

1.     The Grab-Uber merger impacted several groups of workers and drivers, but to different degrees. First, about 300 former employees of Uber were given paid leave of up to three months while Grab identifies suitable positions for them. Those who are not placed within Grab will be compensated in accordance with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

2.     Second, Uber used to have 300 to 400 contract workers. Grab has committed to take over and honour the terms and durations of their contracts.

3.     Third, Uber had about 10,000 drivers driving exclusively for it at the point of merger. More than 9,000 of the affected Uber drivers have since joined Grab. For those who do not, Workforce Singapore and the NTUC’s Employment and Employability Institute are helping them secure new employment. MOM and LTA are also working with the National Private Hire Vehicles Association (NHPVA) and National Taxi Association (NTA) to help them resolve any outstanding payments or contractual disputes with Uber.

4.     The point-to-point transport sector is still evolving. The industry is not yet at its steady state. The Ministry of Transport and LTA are monitoring the development and will intervene as necessary, including instituting a fair regulatory framework to ensure that it stays open and contestable, so that no one single market player can dominate the industry to the detriment of commuters and drivers.