The Motorcycle Taxi Technical Working Group, earlier reported to have serious doubts on the practical inclusion of Grab Philippines in the ongoing pilot testing of the service in cities around the country, has issued a clarification saying the ride-hailing super-app had been part of the program all along and had in fact been informed of its inclusion just days before Christmas last year.
This was made clear by MC TWG chairman and Land Transportation Franchising Regulatory Board chief Teofilo Guadiz on Wednesday, saying Grab Philippines was told in a letter sent 20 December 2023 that it qualified as additional participant in the pilot testing phase of the program in Metro Manila, Cebu City and Cagayan de Oro in Mindanao Island.
This developed as Malacanang made it clear that President Ferdinand Marcos Jr. favors the legalization of motorcycle taxis as mode of public transport and the parallel effort at relaxing the rules governing app-driven transport network vehicle service (TNVS) providers like Grab Philippines.
There had been initial confusion as to where the MC TWG stood on the super-app’s participation in the program with the TWG head having been quoted in reports as reluctant in accepting Grab Philippines’ entry ostensibly because this would mean making the enterprise a “de facto fourth player” of the program already filled by Angkas, JoyRide and Move It.
Grab Ph acquired Move It in 2022 for an undisclosed amount lower than P1 billion that would have compelled the new owners to notify the Philippine Competition Commission, which loathes monopolistic enterprises, on the details to the transaction.
Fear of market control by a single player had been expressed by Digital Pinoy national campaigner Ronald Gustilo who said Grab’s participation is “dangerous because they may be able to control the market with the two companies that could lead to a possible monopoly.”
Gustilo claimed alleged monopolistic practices that “Grab had been doing in other industries they have participated in.”
But Guadiz on Wednesday erased all doubts on where the panel the TWG stands on the issue, saying Grab Philippines is not only granted participation but allowed to deploy or onboard 2,000 riders into the program initially as well.
As this developed, Grab Philippines also took pains to clarify that its bid for a slot in the pilot program arose not from any special government support or endorsement but from its commitment to adhere to public safety and the public good.
“These stories are fake and malicious and it is unfortunate that there are individuals whose goal is to aggressively mislead and malign Grab instead of advocating for the long-awaited legalization of the MC Taxi sector,” Grab Philippines chief operating officer Ronald Roda said.
“Our continued collaboration with regulators and government stakeholders is part of our commitment to transparency and collective problem-solving. We are dedicated to working closely with the MC Taxi TWG and other stakeholders to ensure that our services meet the highest standards of safety, efficiency, and compliance,” Roda said.
“Our confidence stems not from preferential backing but from our steadfast commitment to compliance, safety, and the public good, which we believe aligns with the government’s goals for sustainable and inclusive transportation solutions,” Roda said.
“The MC Taxi sector has so much potential for creating jobs and improving transportation, which can be fully realized with the legalization of the sector. And Grab is fully committed to playing an active role in making this happen for our kababayans,” Roda said.
The motorcycle taxi as a state-sanctioned activity for the riding public is proposed under House Bill 3412 introduced by 1-Rider Party-List Representatives Roge Gutierrez and Bonifacio Bosita supported in full by House Speaker Martin Romuladez.
Guadiz also clarified that Grab Philippines had not been issued a stop order in its bid for a slot in the pilot program, the super-app having met the basic and operational requirements to qualify as additional participant.
