Fair competition amid proposal to ban Move It motorcycle taxis
By J.Lo
"It is unfortunate head of House Committee on Metro Manila Development has recommended 'banning' of Move It, one of only three motorcycle taxi firms servicing thousands of passengers who rely on this affordable, safe and reliable mode of transportation for their daily commute," Grab said in statement ride-hailing giant Grab Philippines has raised concerns over they perceive unjust allegations on recommendation to ban its motorcycle taxi firm Move It.
House committee on Metro Manila development chairman Rolando Valeriano, in 15-page report, earlier said Move It's operations "may have to be halted" due to questions concerning its connections with Grab Philippines transport network vehicle service (TNVS) which acquired former in 2022.
Grab and Move It have yet to receive copy of Valeriano's report.
Ride-hailing company released statement to address multiple concerns, including allegation of non-compliance concerning Grab's acquisition of Move It.
"This issue has long been resolved after receiving approval of Philippine Competition Commission (PCC) and Department of Transportation (DOTr), who both found transaction above board," Grab said.
" PCC and DOTr reiterated this in committee hearing conducted by House Committee on Transportation in the past," it stressed.
Company said drivers and passengers would be greatly affected if thousands of its riders were to lose their jobs, limiting options available to passengers.
Grab also said Move It is open to scrutiny, with condition it occurs on level playing field, just as Angkas and Joyride willingly subject themselves to same standards and scrutiny.
"We respectfully submit that Move It must not be singled out as this is anti-competitive and discriminatory, on final note, we urge all businesses, including Motorcycle Taxi Pilot players, to affirm their commitment to competition and fair play for benefit of all consumers and drivers, " Grab said.
Network of digital advocates welcomed recent recommendation of committee in House of Representatives to prohibit operations of popular motorcycle ride-hailing app citing violations.
Digital Pinoys national campaigner Ronald Gustilo said banning operation of Move It is "only just" as it allowed alleged backdoor entry of Grab in motorcycle taxi pilot study.
"This is welcome development as Grab-Move It deal has skirted previous orders from technical working group of motorcycle taxi program not allowing Grab to participate in the program," said Gustilo.
"We are now urging technical working group to heed recommendation of committee."
It could be remembered Department of Transportation allowed only three operators in its pilot study Angkas, Joyride and Move It later on granted them provisional authority to operate.
Valeriano's report said Grab and Move It have yet to comply with requests for "information crucial in determination of whether Grab is, in fact, de facto fourth player in pilot study."
Digital Pinoys last March urged government to come up with anti-monopoly legislation in order to prevent TNVS companies from controlling whole transportation sector.
In October 2022, PCC said Grab's acquisition of Move it does not require its approval as transaction did not breach P50-billion threshold for compulsory notification.
Move It chairperson Francis Juan earlier said company remains as third player in motorcycle ride-hailing service and that Grab, by acquiring company, did not become fourth player.
Gustilo urged Angkas or JoyRide to absorb riders that may be affected should technical working group of pilot program heeds committee's recommendation so that passengers will not be burdened.
"Affected riders should be accommodated by motorcycle taxi firms if TWG will adopt recommendation so that passengers will not be burdened by this action," Gustilo said.
PCC said Grab Philippines' acquisition of Move It does not require its approval as transaction did not breach threshold for compulsory notification.
In statement PCC OIC chairperson Johannes Bernabe said parties do not need to wait for commission's approval to consummate transaction.
"Publicly available information suggests transaction was entered into by parties when P50 billion notification thresholds under Republic Act 11494 or Bayanihan to Heal as One Act was in effect,"Bernabe said.
Under Bayanihan 2, came into effect in September 2020, mergers and acquisitions with transaction values below P50 billion are exempt from compulsory notification with PCC within two years from effectivity of law. This expired last month.
Bernabe said publicly announced size of transaction seems not to have breached thresholds under Bayanihan Law.
"However, PCC may still launch motu proprio review of transaction if it finds reasonable grounds to believe deal will result in substantial lessening of competition in relevant markets,"Bernabe said.
In August, Grab Philippines bought out Move It, in bid to increase latter's rider fleet.
Grab also said earlier it no longer submitted transaction to PCC for review, assuring merger amounts to below P1 billion. However, no exact amount was disclosed to public during announcement of buyout.
Despite acquisition, Grab said Move It would operate separately from ride-hailing giant, as integrating them would require regulatory approval.
Bernabe said transactions in digital markets are often characterized by small tangible assets fail to meet triggers for mandatory review.
"Their importance and utility to consumers, however, rank high in priorities of commission to merit steadfast monitoring,"he said.
Bernabe said new acquisition by Grab would not affect company's existing legal commitments to PCC relating to its takeover of Uber.
PCC earlier support in amending Land Transportation and Traffic Code to allow two-wheeled vehicles as mode of public transportation.
"Notwithstanding any comprehensive competition review, commission considers availability of motorcycle taxis and future expansion for entry of more players as indicator of emerging market offering additional public transport options for commuters,"Bernabe said.
Agency stressed for concerns relating to passenger safety, accreditation, and eventual franchising of motorcycle taxis, it defers to Department of Transportation, Land Transportation Office and Land Transportation Franchising and Regulatory Board.
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