Editor's PickInvesting Ideas

Review of Grab Philippines’ refund, Move It deal sought

OPPOSITION lawmakers on Tuesday called for a review of ride-hailing company Grab Philippines for its continued inability to refund customers for overpriced fares as well as its acquisition of motorcycle (MC) taxi firm Move It.

“We are concerned that Grab’s repeated refusal to sincerely comply with the authorities stems from its actual monopoly of the TNVS (transportation network vehicle services) market,” House Assistant Minority Leader and Party-List Rep. Arlene D. Brosas said in a media briefing.

After acquiring the MC taxi firm mid-last year, Grab said that Move It continues to operate independently, with its own set of driver’s benefits and support measures separate from Grab’s motorcycle riders.

Ronald Gustilo, national campaigner of Digital Pinoys, said in a news briefing that onboarding activities for applicant riders are conducted on Grab’s premises.

“Grab is claiming that it’s operating separately with Move It but we see that this is not true,” he said in Filipino. “In fact, in the materials of Move It for their onboarding activities, the address which they ask applying riders to go to is the address of Grab’s facility in Marikina.”

In October last year, Transportation Secretary Jaime J. Bautista said that Grab’s acquisition of Move It does not need a review as it is a private transaction.

In a statement sent to BusinessWorld via Viber, Move It said it “reaffirms its commitment to operating in strict accordance with government regulations, prioritizing passenger and rider-partner safety, and upholding fare transparency.”

It also said that it was “actively collaborating” with the MC taxi technical working group to ensure that all rider-partners undergo “mandatory training and assessment, irrespective of their prior work experience.”

PENALTIESMs. Brosas noted that Grab customers have only received 73.8% of the total P25.45-million fine imposed by the Philippine Competition Commission in 2019 for overpriced fares.

“They have repeatedly shown disregard to compliance orders by agencies,” she said. 

In May, the PCC slapped a P9-million fine on Grab for failing to refund customers three years after. It also imposed a P6-million fine on Grab according to a resolution in February, citing violations of three separate orders — Nov. and Dec. 2019, and Oct. 2020 — to pay the fine.

Ms. Brosas called for the need to review and impose stricter provisions to Republic Act No. 10667 or the Philippine Competition Act. — Beatriz Marie D. Cruz

Related Articles

Back to top button
Close
Close