Thailand is moving towards more targeted regulation of ride-hailing and on-demand delivery platforms as each of the markets consolidates around two dominant players, with competition authorities preparing new guidelines to address structural barriers, algorithmic practices and potential abuses of market power.

The Trade Competition Commission of Thailand (TCCT) has established a subcommittee tasked with setting guidelines and an action plan for competition in ride-hailing platforms.

The panel's first meeting is scheduled for Aug 18, with draft regulations setting service standards for digital ride-hailing and on-demand delivery services among the key items for consideration.

DUOPOLY EMERGES

Thailand's ride-hailing and on-demand delivery markets are oligopolies, according to a TCCT analysis.

Over the past three years, the competitive landscape shifted as established players exited and new entrants expanded.

Grab held around 70% of the ride-hailing market in 2024, compared with 20% for Line Man and 5% for inDrive.

By 2026, Grab's share was estimated at 45-50%, while Bolt surged from less than 5% to around 45%, leaving other operators with relatively small shares.

The TCCT describes this structure as a "behavioural duopoly".

Food delivery is even more concentrated. Following Foodpanda's withdrawal from Thailand and the change in ownership of Robinhood, GrabFood and Line Man Wongnai together controlled an estimated 80-90% of transaction volume in 2026.

GrabFood accounted for around 47%, Line Man Wongnai 41% and ShopeeFood around 10%.

While having fewer large platforms can create efficiencies through economies of scale and scope, market concentration also increases the risks of exclusionary behaviour and economic risks being transferred to drivers and small merchants dependent on the platforms, noted the regulator.

The TCCT analysis also identifies the structural characteristics of platform businesses that can make it difficult for new competitors to challenge established operators. One obstacle is the indirect network effect.

A large customer base attracts drivers, and having more drivers improves availability and reduces waiting times, which in turn attracts more customers. New platforms would require massive investment to build both a driver and customer base upon market entry, exposing them to a high level of financial risk.

Another obstacle is participation on several platforms. Drivers can face costs associated with platform-specific equipment, smartphones, internet services and deposits, while loyalty benefits encourage them to concentrate their work on a single platform.

Data creates another competitive advantage. Large platforms can combine extensive transaction histories with loyalty programmes, marketing and payment systems.

Their accumulated databases allow algorithms to better predict consumer behaviour and determine prices, creating a structural technological barrier that is difficult for newcomers to replicate, noted the review.

This means competition increasingly depends not only on fares and commission fees, but also on control of data, algorithms and the wider digital system.

The TCCT analysis identified several pricing practices requiring scrutiny, including opaque dynamic pricing, below-cost pricing and unfair commissions.

The regulator warned that well-funded platforms can subsidise fares or delivery fees during market entry to weaken smaller competitors, before subsequently raising service prices and commissions once the market becomes concentrated.

Other concerns include self-preferencing, where algorithms favour affiliated businesses or services, and exclusivity arrangements that can require merchants or drivers to stay with one platform to obtain preferential commissions or marketing benefits.

REGULATORY OVERSIGHT

Thailand already has regulatory tools covering digital platforms.

The TCCT's e-commerce guideline, issued on March 25, 2026, addresses unfair practices and conduct that could monopolise or restrict competition among multi-sided digital platforms.

However, the commission's own market review raises the question of whether existing instruments need to be amended to strengthen competition oversight specifically for ride-hailing and on-demand delivery.

Recently the TCCT, the Commerce Ministry and the Electronic Transactions Development Agency established a subcommittee to oversee and prevent unfair trade practices in digital platform businesses.

The panel held its first meeting on July 23 to monitor the market rather than waiting for complaints.

The TCCT proposed structural reforms for ride-hailing and online delivery markets to address competition and consumer risks.

This year, the commission has received 68 complaints involving unfair trade practices, with 17 related to digital platforms.