Manila solon says Grab-Move It excluded from pilot study due to violations

Manila 3rd District Representative Atty. Joel Chua FILE PHOTO

MANILA, Philippines — Manila 3rd District Rep. Joel Chua on Monday said that the recommendation to exclude Grab-Move It from a pilot study on motorcycle-taxi (MC Taxi) operations is due to Grab’s previously committed violations, specifically, making a “backdoor entry” into the industry.

Chua, who serves as the House committee on Metro Manila development (CMMD) vice chair, made the pronouncement after the CMMD on September 5 recommended the exclusion of Move It from the pilot study.

The lawmaker in a statement reiterated that the recommendation is mainly a response to Grab Philippines’ attempts to bypass government regulations and gain dominance in the app-based transportation sector.

He added that an investigation revealed “multiple instances of non-compliance with proper procedures and the circumvention of government regulations” on Grab’s part.

“These infractions include Grab’s disregard for the Department of Transportation Technical Working Group’s (DOTr TWG) decision in September 2021, which prohibited any collaboration between Grab and Move It. Records indicate that Grab had previously sought inclusion in the MC taxi pilot study but withdrew their application,” said Chua in a statement.

“They later made another attempt by partnering with Move It, despite the DOTr-TWG’s clear rejection of the collaboration. Grab acquired Move It in August 2022, technically positioning the company as a de facto fourth player in the motorcycle taxi pilot study,” he added.

“Furthermore, Grab also defied the DOTr-TWG directive, which specified that Grab could only enter the motorcycle taxi industry after the MC Taxi law had been passed,” the lawmaker continued.

Chua stressed that Grab must adhere to due process if they wish to be part of the country’s MC taxi program, and that the government cannot allow a foreign-owned company to bend the rules and potentially dominate the Philippines’ app-based transportation system.

“Our actions are driven by the goal of legislation. As Grab’s acquisition of Move It did not comply with the necessary rules to be included in the motorcycle pilot study, Move It should not be considered one of the players,” said Chua.

Other violations

Apart from bypassing government regulations, Chua also brought up past violations committed by the company including unpaid penalties, overcharging, dominance abuse, and mistreatment of its riders.

Chua said Grab failed to meet financial obligations set by the Philippine Competition Commission (PCC), refunding only P6.15 million of the PCC-ordered P25.45 million.

READ: Grab: House proposal to remove ‘Move It’ app from pilot study is discriminatory

Furthermore, the PCC has also confirmed that Grab continued to raise fares despite issues on overcharging — from P45 in 2019 to P 85 this year.

READ: House panel seeks to exclude Move it, Grab from motorcycle-taxi pilot study

Reports of surge charging outside of rush hours were also flagged, violating fare matrix guidelines.

Chua said that the CMMD’s recent decision should serve as a firm reminder to Grab that circumventing the country’s established rules and regulations is not acceptable.

“If they choose to disregard these rules, they must be prepared to be held accountable for their actions,” said Chua.