Grab’s approval as MC taxi operator still in limbo due to Move It acquisition issue
MANILA, Philippines — The approval of Grab Philippines as a motorcycle taxi operator is still hanging due to an issue with the company’s acquisition of ride-hailing application Move It, Land Transportation Office Chief Vigor Mendoza said.
During the hearing of the House committee on transportation regarding the pilot study for motorcycle taxis, Mendoza gave his opening speech, which assured the lawmakers that the technical working group (TWG) assigned by the Department of Transportation (DOTr) is at the tail end of its study even as it asked for a six-month extension.
Mendoza said they have visited the different motorcycle taxi applicants and are ready to approve their respective applications save for Grab, as questions have been raised over the legality of its buyout of Move It.
“We have already done the ocular inspections of the premises of these applicants, and we are about to approve their applicant subject to the consideration of the committee your Honor. Except for Grab Philippines, since there is a legal issue on the table regarding the buyout of Grab Philippines on one of the current participants, Move It,” Mendoza, vice chair of the TWG, said last December 12.
“That’s being discussed right now whether that is an impediment to the study or will it bolster the study even further. So as we are seeing Mr. chairman, the technical working group, because the need for a further in-depth study, specifically for the market capacity,” he added.
Last August 2022, Grab Philippines beefed up its motorcycle services with its acquisition of Move It.
Article continues after this advertisementMove It is one of the three motorcycle taxi allowed to operate under the TWG, with the two others being Angkas and Joyride.
Article continues after this advertisementREAD: Grab PH enters motorcycle taxi business with Move It purchase
However, the TWG barred Grab from entering the motorcycle taxi business as this would make the company the fourth player in the industry, which is not allowed under existing conditions of the pilot study.
READ: TWG terminates Move It, Grab partnership in MC Taxi pilot study
According to the TWG, Grab can apply for the motorcycle taxi sector after a law legalizing such segment has been passed and enacted.
Ronald Gustilo of the Digital Pinoys National Campaigner, during the hearing, warned the public about the potential market control stemming from Grab’s affiliation with Move It.
“Delikado po ‘yun dahil [That would be detrimental because] they may be able to control the market with their two companies which could lead to [the] possible monopoly of the industry, as we’ve seen with what Grab has been doing with other industries that they have been participating [in] now,” Gustilo noted.
READ: Grab: House proposal to remove ‘Move It’ app from pilot study is discriminatory
Grab in a statement last October 26 called proposals to remove Move It from the pilot study “discriminatory,” as it goes against competition.
This was after another House panel — the committee on Metro Manila development recommended last September 5 to remove Move It from the pilot study.
Grab claimed that the issue hounding its buyout of Move It has been resolved after receiving the approval of the Philippine Competition Commission and the DOTr in acquiring Move It.
