Grab Philippines has to comply with the government rules before joining the motorcycle taxi pilot program, according to a lawmaker.
Manila 3rd district representative and vice chairperson of the House committee on Metro Manila Development (CMMD) Joel Chua acknowledges the difficulties faced by Move It riders but emphasized the need for Grab PH to observe due process if they wish to be part of the country’s MC taxi program.
Chua said the legislators cannot allow a foreign-owned company to bend the rules and dominate the country’s app-based transportation system.
“Our actions are driven by the goal of legislation. As Grab’s acquisition of Move It did not comply with the necessary rules to be included in the motorcycle pilot study, Move It should not be considered one of the players.” he said.
Chua said the recommendation to exclude Move It from the government’s motorcycle taxi pilot program “is not just about ensuring fair competition among motorcycle taxi operators,” but for Grab Philippines’ attempts to bypass government regulation and gain dominance in the app-based transportation sector.
Chua said the CMMD’s recent decision serve as a reminder to Grab that circumventing established rules and regulations is “not acceptable. If they choose to disregard these rules, they must be prepared to be held accountable for their actions.”
This developed after the United Motorcycle Taxi Community (UMTC) claimed that CMMD’s recommendation was an “unjustifiable threat to their livelihoods” and could affect the lives of 6,500 families.
“The House Committee on Metro Manila Development fully supports fair competition within the motorcycle taxi industry. In pursuit of fairness, we conducted a thorough investigation into Grab’s alleged back-door entry into the motorcycle taxi pilot program. This involved Grab’s acquisition of 99 percent of Move It’s business operations,” Chua said.
“Our investigation revealed multiple instances of non-compliance with proper procedures and the circumvention of government regulations,” he added.
These infractions, according to Chua, include Grab’s disregard for the Department of Transportation Technical Working Group’s (DOTr TWG) decision in September 2021, prohibiting collaboration between Grab and Move It.
“Records indicate that Grab had previously sought inclusion in the MC taxi pilot study but withdrew their application. They later made another attempt by partnering with Move It, despite the DOTr-TWG’s clear rejection of the collaboration,” Chua said.
“Grab acquired Move It in August 2022, technically positioning the company as a de facto fourth player in the motorcycle taxi pilot study,” he added.
Furthermore, the lawmaker said Grab also defied the DOTr-TWG directive, which specified that Grab could only enter the motorcycle taxi industry after the MC Taxi law had been passed.”
Beyond the alleged violations in the MC Taxi industry, Grab is also grappling with various issues, including unpaid penalties, overcharging, dominance abuse, and mistreatment of its riders. Notably, Grab failed to meet financial obligations set by the Philippine Competition Commission (PCC).
