Metro Manila (CNN Philippines, November 7) — The proposal to exclude Move It from the pilot study on motorcycle taxi operations is being blamed on Grab Philippines’ alleged “non-compliance with proper procedures” in entering the growing industry, a lawmaker said.
According to House Committee on Metro Manila Development (CMMD) Vice Chairperson and Manila 3rd District Representative Joel Chua, the panel launched a probe into the ride-hailing giant’s alleged “backdoor entry” into the segment through its acquisition of Move It in mid-2022.
“Our investigation revealed multiple instances of non-compliance with proper procedures and the circumvention of government regulations. These infractions include Grab’s disregard for the Department of Transportation Technical Working Group’s (DOTr TWG) decision in September 2021, which prohibited any collaboration between Grab and Move It,” he said in a statement on Monday.
Chua also pointed out that Grab’s purchase of Move It “technically” positioned the company “as a de facto fourth player.”
“Grab also defied the DOTr-TWG directive, which specified that Grab could only enter the motorcycle taxi industry after the MC Taxi law had been passed,” he added.
The pilot program only allows three service providers: Angkas, Joyride, and Move It.
However, Grab and Move It had been reiterating that the latter would run its operations independently. Transportation Secretary Jaime Bautista even said before that there was no need to probe the transaction.
“[W]e view with deep concern the allegation of non-compliance pertaining to Grab’s acquisition of Move It,” the two companies said in a joint statement Tuesday.
“This issue has long been resolved after receiving the approval of the Philippine Competition Commission (PCC) and the Department of Transportation (DOTr), who both found the transaction above board,” the statement read.
It also said Move It is “open to any scrutiny” as long as “Angkas and Joyride subject themselves to the same level of scrutiny and high standards.”
It added that the company must not be singled out as it was “anti-competitive and discriminatory.”
Amid this proposal, some Move It riders staged a protest in Manila recently for fear of losing their jobs.
READ: Transport group slams solon for call to exclude Move It from MC pilot
But Chua maintained that their recommendation was “driven by the goal of legislation.”
“As Grab’s acquisition of Move It did not comply with the necessary rules to be included in the motorcycle pilot study, Move It should not be considered one of the players,” he said.
The lawmaker also mentioned in the statement some of Grab’s issues, such as alleged “overcharging, dominance abuse, and mistreatment of its riders.”
Several GrabFood delivery riders bared that they were suspended after calling out Grab’s new fare restructuring program. The company has yet to comment on the allegation.
