The Philippine Competition Commission (PCC) said imposing a cap on the number of motorcycle taxis in the country is not healthy as it will not be beneficial to the riding public.
“In terms of market situation, more players would be better for consumers… If we are going to apply competition principles, no cap would be better given that it would benefit the consumers,” said Kenneth Tanate, PCC executive director.
Tanate made the remark in response to Sen. Grace Poe’s query on what the PCC thinks on the entry of new players like Grab Philippines and other ride-hailing companies in the motorcycle taxi industry, as the Senate committee on public services tackled Senate Bill No. 104, or the proposed measure which seeks to allow and regulate the use of motorcycles as public utility vehicles.
Poe, chairman of the public services committee, is the author of the proposed bill.
In the guidelines of the Department of Transportation-backed Technical Working Group, only three transportation network companies are allowed to operate under the three-year-old pilot program — Angkas which has an estimated market share of more than 50 percent, JoyRide and Move It.
The equal allocations for the three ride-hailing companies in pilot areas are 45,000 in the National Capital Region, 9,000 in Cebu and 9,000 in Cagayan De Oro.
According to Poe, who supports the legalization of motorcycles-for-hire through the passage of a law, the non-imposition of a cap was an “interesting thought” and even sought the experience of Grab in other countries where it operates.
“In terms of slots, there is no cap for motorcycles in the countries we operate,” said Lim Yew Heng, Grab senior executive vice president, who is based in Singapore. Grab operates motorcycle taxis in Indonesia, Vietnam and Thailand.
In a statement submitted to the Senate panel, Lim said Grab is backing the bills to legalize motorcycle taxis as a “well-regulated and inclusive framework for motorcycle taxis in the Philippines can bring significant benefits.”
“Passing a law that regulates motorcycle taxis stabilizes the regulatory environment, which will encourage healthy competition. The sooner this is done, the better for consumers, who under the current setup can only choose between three motorcycle taxi companies,” Lim said.
With around 2.5 million new motorcycles registered annually in the Philippines, Lim said legalizing motorcycle taxis can provide livelihood opportunities for Filipinos and additional revenue stream for the government.
