THE House of Representatives is looking into issues hounding Grab Philippine’s acquisition of motorcycle taxi Move it, which is insisting the deal is above board.
Move It made the claim before lawmakers amid concerns raised by some quarters, particularly Marikina Rep. Stella Quimbo, who said Grab’s entry in the motorcycle taxi sector may only lead to higher fares, citing Grab’s “previous behavior” in 2018 when, after acquiring rival Uber, “there was an increase in (fare) prices in that period after that acquisition.”
“We are happy to disclose that the acquisition complied with the law and all approvals required for the acquisition have been obtained. It did not violate any requirement of the MC Taxi TWG (technical working group under the Department of Transportation),” Move It said in its opening statement read by its lawyer Ann Albana before the committee on Metro Manila development late Wednesday afternoon.
“We wish to assure the public that the operations of Move It will still be under the supervision of the MC taxi TWG, and it will continue to abide by MC Taxi Guidelines, especially on the safety and welfare of the consumers,” Move It added.
Quimbo, a senior vice chair of the committee on appropriations, wants the Philippine Competition Commission (PCC) to keep an eye on the deal, saying “there is a danger of potential dominance (by Grab in the NC taxi sector) and because of previous behavior, there is a possibility of a fare hike).”
She said the PCC’s job is to safeguard the public’s interest, noting that one of the “voluntary commitments” that Grab had to comply with after entering a deal with Uber was to respond to the allegations of overcharging.
This was something that Anton Arcilla of the PCC Mergers and Acquisitions Office confirmed: “That’s right. That’s one of the dangers that PCC intends to prevent.”
Arcilla said the PCC is still asking for information and documents from Grab to show its compliance with the commitments that they agreed to in 2018 but later admitted that Grab was fined for “price variance” or overcharging, which prompted Quimbo to say that it was already proof the PCC already had “findings” on the matter.
Move It tried to allay fears that the deal with Grab may place the public at a disadvantage, saying the acquisition is “not anti-competitive since Grab is not offering motorcycle ride-hailing services.”
Because of the acquisition, Move It said it will benefit from Grab’s innovation and economies of scale, and the public will have access to superior service at competitive pricing.
“At present, there are other market players who appear to have a stronger presence in the motorcycle ride hailing market,” Move It said, referring to one of its rivals, Angkas. “In fact, the acquisition is pro-competitive and pro-consumer. Strengthening Move It will improve and develop competition and satisfy the increasing unserved demand for motorcycle taxis,” Move It added.
There are two bigger players in Angkas and Joyride and Move It only controls five percent of the market. When Grab acquired Uber, the two were the dominant players in the transportation network vehicle service (TNVS) sector involving four-wheel vehicles.
Some quarters fear the Grab-Move It deal was designed for Grab to have instant accreditation by virtue of its acquisition of Move It, which was granted accreditation by the TWG.
Move It, however, said the arguments against it and Grab are “clearly misplaced and are merely based on speculations and conjectures.” It stressed that even with the acquisition, Move It continues to hold and possess the accreditation given by TWG “and it is not in any manner transferred to Grab.”
“Even with the acquisition, Grab and Move It will remain two distinct and separate entities,” it said. “Thus, it is erroneous and misleading to claim that the accreditation has been transferred to Grab by virtue of the acquisition.”
Move It explained that its Certificate of Compliance and Provisional Authority to Operate were not transferred to a different entity even after the acquisition, adding that it also does not require prior approval by any government agency, including the MC Taxi TWG, in case of change in ownership structure of Move It.
