Koko to LTFRB: Ensure entry of new TNVS when Uber exits

Senate President Aquilino Pimentel III. (File photo from the Philippine Daily Inquirer)

Senate President Aquilino “Koko” Pimentel III asked the Land Transportation Franchise and Regulatory Board (LTFRB) to fast-track the entry of other transport network vehicle service (TNVS) players to ensure that Grab would not monopolize the ride-hailing industry in the country.

“There is a legitimate fear among regular TNVS users that Grab’s acquisition of Uber’s operations in the country will lead to higher fares, which is the natural consequence when a player monopolizes a particular industry,” Pimentel said in a statement on Wednesday.

Singapore-based Grab has acquired Uber’s operations in Southeast Asia, covering ride-sharing services in the Philippines, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, and Vietnam. Uber’s last day of operations in the Philippines will be on April 8.

The senator noted that many TNVS users regularly compared the rates of Uber and Grab before booking a ride but this option, he said, would no longer be available to commuters when Grab becomes the sole TNVS provider come April 9.

Thus, Pimentel said, it was incumbent upon the LTFRB “to work overtime to process pending TNVS applications and to ensure that Grab would not take advantage of its monopoly of the TNVS industry.”

“The LTFRB announcement that there are three new ride-sharing companies that want to enter the country can only be considered good news if any or all of these companies actually get to service our countrymen,” he said.

READ: After Grab-Uber merger, LTFRB says 3 new TNVS to enter PH

He said the LTFRB should strike a balance between encouraging the entry of new players and the need for these players to comply with the country’s TNVS guidelines.

“We need real competition, not potential competition,” said the Senate president. “As long as riders have zero options, they will be vulnerable to overpricing and poor service—and this is where the LTFRB must come in.”

Pimentel also called on the LTFRB to pay close attention to feedback from TNVS users and put in mechanisms to immediately act on rider complaints.

“Social media has provided the LTFRB with the tools to monitor the prices and the performance of Grab after Uber exits. But the real test will be how they respond to the feedback from commuters. They should be ready to act on complaints to discourage Grab and its drivers from violating TNVS rules and regulations,” he further said. /jpv