Thailand’s competition regulator is taking a closer look at the dominance of major players in the ride-hailing and on-demand delivery sectors. The Trade Competition Commission of Thailand (TCCT) has formed a special subcommittee to develop guidelines and an action plan aimed at fostering healthier competition within these digital platform markets. The panel’s initial meeting, scheduled for August 18, will focus on drafting service standards for digital ride-hailing and on-demand delivery services.
Market Concentration and Emerging Duopolies
An analysis by the TCCT reveals that both the ride-hailing and on-demand delivery markets in Thailand are characterized by oligopolistic structures, with a significant shift in the competitive landscape over the past three years. Established companies have exited, while new entrants have expanded their reach. The TCCT describes the current ride-hailing market as a “behavioural duopoly.” In 2024, Grab commanded approximately 70% of the ride-hailing market, followed by Line Man with 20% and inDrive with 5%. Projections for 2026 indicated a shift, with Grab’s share estimated to fall to 45-50%, while Bolt was expected to surge from under 5% to around 45%, leaving other operators with smaller market shares.
The food delivery sector is even more concentrated. Following the departure of Foodpanda from Thailand and a change in ownership for Robinhood, GrabFood and Line Man Wongnai together are estimated to control 80-90% of the transaction volume as of 2026. GrabFood is projected to hold about 47% of this market, Line Man Wongnai 41%, and ShopeeFood around 10%.
Risks of Market Concentration
While a market with fewer large platforms can sometimes lead to efficiencies through economies of scale and scope, the TCCT highlights significant risks associated with such concentration. These include an increased likelihood of exclusionary practices and the potential for economic burdens to be passed on to drivers and small merchants who rely heavily on these platforms. The regulator’s analysis points to several structural characteristics inherent in platform businesses that create substantial barriers for new competitors seeking to challenge established operators.
Barriers to Entry for New Platforms
One of the primary obstacles identified is the indirect network effect. A large base of customers naturally attracts more drivers seeking work. In turn, a greater number of available drivers improves service reliability and reduces waiting times, which further enhances the platform’s appeal to customers. For a new platform to enter the market, it would require immense financial investment to simultaneously build both a substantial driver network and a large customer base, exposing the venture to considerable financial risk.
Another challenge arises from drivers’ participation across multiple platforms. Drivers may incur costs related to platform-specific equipment, smartphones, internet services, and security deposits. Furthermore, loyalty programs and incentives often encourage drivers to focus their efforts on a single platform, limiting their availability for new entrants.
The Role of Data and Technology
Data represents a significant competitive advantage for incumbent platforms. Large players can leverage extensive transaction histories, combined with loyalty programs, marketing initiatives, and integrated payment systems. The vast databases they accumulate enable their algorithms to more accurately predict consumer behavior and optimize pricing strategies. This creates a formidable technological barrier that is exceptionally difficult for newcomers to replicate.
Consequently, competition in these markets is increasingly shaped not only by fares and commission rates but also by the control of data, the sophistication of algorithms, and the overall digital ecosystem. The TCCT’s review has pinpointed several pricing practices that warrant close scrutiny. These include opaque dynamic pricing models, the practice of pricing services below cost, and the imposition of unfair commission fees.
Concerns Over Unfair Practices
The regulator has issued a warning that well-capitalized platforms may use subsidized fares or delivery fees as a strategy to enter the market and undermine smaller competitors. Once market concentration is achieved, these platforms might subsequently increase service prices and commission rates. Other practices raising concerns include self-preferencing, where platform algorithms might unfairly favor affiliated businesses or services, and exclusivity arrangements. These arrangements can compel merchants or drivers to commit to a single platform in exchange for preferential commissions or marketing benefits, thereby limiting their options and stifling broader competition.
Existing and Proposed Regulatory Oversight
Thailand already possesses regulatory frameworks designed to address issues related to digital platforms. The TCCT’s e-commerce guidelines, established on March 25, 2026, address unfair practices and conduct that could lead to monopolistic behavior or restrict competition among multi-sided digital platforms. However, the commission’s recent market review suggests a need to evaluate whether these existing instruments are sufficient to strengthen competition oversight, particularly for the ride-hailing and on-demand delivery sectors.
In response to these concerns, the TCCT, in collaboration with the Ministry of Commerce and the Electronic Transactions Development Agency, has established a subcommittee. This panel is tasked with actively monitoring and preventing unfair trade practices within digital platform businesses, moving beyond a reactive approach that previously relied on formal complaints. The subcommittee held its inaugural meeting on July 23 to initiate its market surveillance efforts.
The TCCT has put forth proposals for structural reforms in the ride-hailing and online delivery markets to mitigate competition and consumer risks. This year alone, the commission has received 68 complaints concerning unfair trade practices, with 17 of these specifically related to digital platforms, underscoring the urgency of the regulatory review.
Conclusion: Towards a More Competitive Digital Marketplace
The establishment of the TCCT’s subcommittee signifies a proactive stance by Thai regulators to address the growing concentration of power among major digital platforms. By developing targeted guidelines and action plans, the aim is to create a more equitable and competitive environment for ride-hailing and on-demand delivery services. The focus on structural barriers, data control, and potentially unfair pricing and exclusivity practices indicates a comprehensive approach to safeguarding consumer interests and promoting fair competition in Thailand’s rapidly evolving digital economy.
