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"Grab has also recognised that in the proposed acquisition, it's going to probably to be able to noticeably help you save over the incentives that it must spend to motorists in comparison with if it employed alternative means to increase driver source."
get may well Consequently "entrench and bolster" its presently dominant situation within the experience-hail platform current market, claimed CCCS.
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CCCS stated that get's acquisition of Trans-cab with the objective to "boost The provision of motorists on its trip-hail System" is proposed at a time when its rival journey-hail platforms are dealing with "driver supply shortages".
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The watchdog said that companies usually are not prohibited from having a dominant posture or striving to safeguard their marketplace position via "competitive advantage", get more info for example by introducing progressive goods.
"Data analysed by CCCS suggests that drivers who hire from experience-hail platform-owned fleets usually use a lot more of that experience-hail platform compared to motorists who don't lease from these fleets.
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"The proposed acquisition is Therefore anticipated to cause a greater degree of 'stickiness' of Trans-taxi drivers to seize’s trip-hail System and a possible reduction in use of rival ride-hail platforms," said CCCS.
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This can be due to numerous explanations, including the aforementioned "stickiness" of motorists to sure trip-hail platforms, the superior price of fleet possession and expansion, and driver incentives.