Grab not allowed to join pilot study on motorcycle taxis, says LTFRB

Man holding cellphone showing Grab logo (INQUIRER.net stock photo)

Grab is not authorized to participate in the pilot study on motorcycle transport services or MC taxis.

It is also not allowed to operate such a service in the country.

These clarifications were made by Land Transportation Franchising and Regulatory Board Chairperson Teofilo Guadiz III.

Guadiz also heads the Motorcycle Taxi Technical Working Group (MC Taxi TWG) that is conducting the study.

In a letter dated February 1 addressed to Attorney Noel Valerio, Guadiz stated only motorcycle companies Joyride, Angkas, and Move It can join the project.

Valerio is counsel from Maderazo, Valerio and Partners.

“Prefatorily, the Motorcycle Taxi Technical Working Group (MC Taxi TWG) agrees with your statement that Grab is not authorized to participate in the pilot implementation study or to operate a motorcycle taxi service,” the letter of Guadiz read.

The LTFRB head replied to the letter following a complaint filed by Valerio.

Valerio reported to the TWG the alleged unauthorized operation of motorcycle taxi services of Grab in Metro Manila and Cebu.

A notice has been sent to Grab, requesting the company to respond to the complaint in writing.

Meanwhile, Attorney Antonio Inton of Lawyers for Commuter Safety and Protection welcomed the development.

“This has been a long time coming for the TWG to finally acknowledge clearly that Grab has no right nor legal mandate to operate any form of motorcycle taxi service anywhere in the Philippines,” said Inton in a statement.

Various consumer groups and organizations previously expressed their concerns about Grab’s acquisition of Move It motorcycle taxi service.

They believe Grab bypassed the rules and regulations that governed motorcycle taxis.

Inton criticized the alleged monopolistic practice of Grab in both the two-wheel and four-wheel taxi services.

He feared commuters might fall victim to unwarranted surge pricing or the rate of fares during peak hours, illegal fare hikes, and other potential abuses by a dominant industry player.

“Even the Philippine Competitive Commission and some of our esteemed Senators and members of Congress have spoken out against Grab, who seeks to dominate the TNVS and MC Taxi business in the Philippines,” observed Inton.

INQUIRER.net asked Grab for its side, but it has yet to respond as of posting time.