SINGAPORE — Under their tie-up announced earlier this month, ride-hailing firm Uber and taxi operator ComfortDelGro are looking to integrate their mobile applications, which will allow commuters to book ComfortDelgro’s taxis through a new “uberFLASH” service on the Uber app.

This was revealed on Thursday (Dec 21) after the Competition Commission of Singapore (CCS) called for public feedback on the proposed partnership between the two companies under a S$642 million deal which was announced on Dec 8.

Based on submissions from the firms, the collaboration would cover booking services for meter-fared taxi services — with fares continuing to be set by ComfortDelgro — but it will “generally not cover (ComfortDelgro’s) core street hail business”. When an order is made by a commuter on the app, Uber will use its proprietary technology to dispatch the closest available taxi or chauffeured private hire car.

The companies said the proposed collaboration will, among other things, “involve combining fleet resources of both (ComfortDelgro) and Uber to efficiently and effectively cater to the transportation needs of users of intra-city transportation services in Singapore”.

The public consultation will run from Thursday to Jan 8.

Singapore’s Competition Act prohibits mergers that have or may be expected to lead to a substantial lessening of competition within any market in Singapore. It also bans agreements that prevent, restrict or distort competition here, as well as “the abuse of a dominant position in any market in Singapore by an entity”.

The competition watchdog said it was notified by ComfortDelgro, Uber and Lion City Holdings on Dec 11. The deal, which is the single largest for public-listed ComfortDelgro to date, will see the taxi operator acquiring 51 per cent of Lion City Holdings shares from Uber. Lion City Holdings is Uber’s car-rental arm in Singapore, and runs Lion City Rentals which has a fleet of about 14,000 vehicles. The deal, which is subject to regulatory approval, will “create a path” for ComfortDelGro’s cabbies to take on bookings via Uber’s app, the taxi operator had previously said.

CCS said the companies’ submissions state that the businesses of ComfortDelgro and Uber/Lion City “overlap in the rental/leasing of private cars, and the provision of taxi and chauffeur private hire car services”.

The firms also said that the rental car market is “extremely competitive, in view of the presence of a large number of existing competitors in the market”, and the need to ensure driving remains a “sufficiently attractive choice of occupation”.

Experts had previously told TODAY that as things stand, the deal appears inadequate to turn ComfortDelgro’s bleeding domestic taxi business around. Singapore University of Social Sciences transport economist Walter Theseira, for example, noted that the future of mobility platforms lies in algorithms, data and technology that match travel supply with demand — and “not in the business of owning large fleets”.