LCSP Open Letter to Grab Philippines

Grab Philippines, you already have an accreditation in the motorcycle taxi pilot through Move It, in which you have a 99% ownership stake. Why are you asking for a second accreditation for Grab Bike?

A double “franchise” for Grab Philippines sidelines seven other Filipino applicants to enter the MC Taxi pilot.

In articles published in major publications on February 28, 2024, it was reported that Grab Philippines’s bid to enter the MC Taxi pilot is just awaiting final regulatory approval. These reports were also accompanied by a letter dated December 20, 2023 addressed to Grab Philippines from Atty. Teofilo E. Guadiz III that, interestingly, has already been superseded by a letter dated February 1, 2024 which stated that Grab Philippines, through Grab Bike, is not authorized to operate under the MC Taxi pilot.

It’s curious how there’s no mention of Move It, a subsidiary of Grab Philippines, in any of the reports. Move It, one of the original participants of the MC Taxi pilot along with Angkas and Joyride, is currently operating in Metro Manila and appears to have expanded its operations to Metro Cebu and Cagayan de Oro even without a confirmed allocation for these areas. Its services are also heavily advertised on the Grab superapp.

According to your own statements, your acquisition of Move It would pave the way for Grab to enter the MC Taxi market. The acquisition came after your initial partnership with Move It—which allowed Move It’s services to be accessible through the Grab platform—was permanently terminated by the MC Taxi Technical Working Group on the basis that it would make you a de facto fourth player in the MC Taxi pilot.

For all intents and purposes, you own and are in full control of Move It. Through Move It, you are already a participant in the MC Taxi pilot. Why are you in a hurry to join the MC Taxi pilot with a second entry?

If you are to be believed, your goal in entering the MC Taxi sector is the creation of jobs and the improvement of transportation—all of which are goals that you can achieve through Move It. To add to this, the President has already given a directive to prioritize the passage of a bill regulating MC Taxis. However, it seems that you are aiming for the inclusion of not one but two Grab-controlled entities within the MC Taxi pilot. This may reasonably be taken as an indication that you may be gearing up to dominate the MC Taxi market by essentially obtaining a double accreditation. Based on your history of infractions in the spaces where you are currently dominant, this seems to be a legitimate concern that is shared by industry stakeholders. A double “franchise” for Grab Philippines sidelines seven other Filipino applicants to enter the MC Taxi pilot.

When you acquired Uber’s Southeast Asia business in 2018, you emerged with an estimated 93.22% of the Philippines’ four-wheel ride-hailing market. To address the legitimate concerns raised by the Philippine Competition Commission (PCC), the country’s competition watchdog, you executed an undertaking which outlined your voluntary commitments, including, among others, commitments in respect of fare transparency and pricing behavior. Over the course of several years, fines were imposed and refunds were ordered by the PCC for violations of said commitments and overpricing. As of 2023, you still have not fully complied with such orders.

You were also fined by the Land Transportation Franchising and Regulatory Board (LTFRB) in relation to your pricing issues and faced controversy regarding the increase in your commission rate, implemented without consultation with your riders, your primary stakeholders. You were once again embroiled in controversy after the LTFRB launched an investigation into how you compute fares, particularly during demand surges, and your base fare for short trips following consumer complaints.

All the concerns raised in relation to your participation in the MC Taxi pilot were touched upon in the report dated September 5, 2023 submitted by the Congressional Committee on Metro Manila Development to House Speaker Martin Romualdez.

Despite all the foregoing, you continue to push for expansion in the MC Taxi space.

By writing this letter, we hope to make known to the public the concerns surrounding your participation in the MC Taxi pilot. We implore you to be honest and open in your dealings with the regulators and the riding public.

Grab Philippines, please engage with your stakeholders in good faith and in full transparency!

Lawyers for Commuter Safety and Protection