MANILA, Philippines —The Philippine Competition Commission (PCC) has summoned the two transport network companies (TNC), Uber and Grab, to hear their stance on the acquisition deal.
The PCC wants to recommend interim measures to maintain good competition among the two TNCs.
One of the interim measures is to suspend the acquisition deal and let Uber operate beyond their deadline of April 8.
“If our review does indicate that this transaction is going to harm, substantially harm, the riding public, then we will do our, mandated of us to do,” PCC chairman Arsenio Balisacan said.
But Uber opposed the idea saying all their employees have already left their jobs in the company.
Uber also decided to exit from the Southeast Asia market and sell part of their assets to Grab.
But Grab explained that there is still competition even if Uber has left the market.
They said there are still more options to choose from aside from the service of ride-sharing applications.
“The interim measure, depending on what they are, would mildly affect, possibly, the acquisition of drivers or the moving of drivers to Grab if they are still operating on Uber platform,” said Grab PH country head, Brian Cu.
Meanwhile, the Land Transportation Franchising and Regulatory Board (LTFRB) assured that there will be three new TNCs that may operate in the country soon.
The TNCs applying for registration are Hype, I-para and Go Lag.
The LTFRB said the firms are just completing the requirements for operation.
“Kung ma-submit nila ngayon, next week lalabas yung certificate of accreditation,” said LTFRB chairman Martin Delgra.
(If they can submit these now, next week the certificate of accreditation may be released.)
The LTFRB said they are not imposing limitations on the number of TNCs that seek to operate in the country.
It said they will accept as many as possible to boost the demand for ride-sharing applications like Uber.
Consumer groups are in favor of allowing more TNCs to operate.
However, the government should give the public enough time to adjust before it decides on the acquisition by Grab of Uber.
Wala na tayong choice. Isa na lang maiiwan; walang competition. At yung sinasabi na dadating pa, dadating pa lang yun. Wala pa yung track record,” said Laban Konsyumer Inc. chairman Vic Dimagiba.
(We have no choice. Only one is left; there’s no competition. And the ones they said are coming, they’re not here yet. They don’t have a track record yet.)
Meanwhile, the LTFRB assured that the fares of Grab will not immediately increase since their application for fare hike needs to undergo a process. — Mon Jocson | UNTV News & Rescue
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