Grab Philippines Barred from Entering Motorcycle Taxi Segment

The government’s technical working group (TWG) for motorcycle taxis has recently barred prominent ride-hailing app Grab Philippines from entering the segment after it was advised to dissolve its partnership with Move It. Alongside Angkas and Joyride, Move It is among the original players of the motorcycle taxi segment in the country.

Move It CEO Francis Juan received a letter from the TWG on December 10 instructing the company to “permanently terminate” its partnership with Grab Philippines after it was suspended on September 30. Continuing the tie-up between the two companies would make Grab Philippines “the fourth de facto player, which is not allowed under existing conditions of the pilot study,” explained the TWG.

“[A]llowing the collaboration to proceed will only rekindle the issues that were raised by the complainants and will further put the MC Taxi TWG in a very tight and compromising position from both the House of Congress and Senate, the two other players and the stakeholders,” noted the letter.

The TWG, however, recognized the success of the partnership in recruiting more drivers to boost the study. “The MC Taxi TWG was very pleased to know that you were able to onboard substantial numbers of riders that [were] enough to carry out Move It’s role in the pilot study… Nevertheless, the pilot study is now on its concluding stage, thus, onboarding new recruits may no longer be necessary at this point in time.”

This letter was signed by TWG co-chairs retired Brig. Gen. Manuel Gonzales and retired Police Col. Joel Pernito. While Grab Philippines has been barred, it may still be permitted to enter the motorcycle taxi sector in the future should a law be passed legalizing the nascent segment.

Source: Inquirer