Home>News>Grab eyeing to monopolize transport sector; PCC urged to intervene

Grab eyeing to monopolize transport sector; PCC urged to intervene

Digital Pinoys

A network of digital advocates is urging the Philippine Competition Commission to practice its oversight function as Grab Philippines pushes to monopolize the transportation sector.

Digital Pinoys national campaigner Ronald Gustilo said that the PCC should look into the possibility that Grab will be soon controlling and monopolizing the transportation sector.

“With Grab monopolizing the 4-wheel ride hailing service, they have also dominated the food delivery and on-demand parcel delivery service. Grab also ventured into the motorcycle taxi game by virtue of acquiring Move It and Grab is also offering tricycle-hailing service.”

Grab Trike has been reportedly operating in five provinces – Albay, Pangasinan, Bataan, Negros Oriental and Pampanga – to which tricycle drivers have been complaining against.

“If Grab ventured into the tricycle hailing service, what stops them from also going after buses, UV express service, Jeepneys and even pedicabs. While this possibility may seem good at first glance, it may actually lead into chaos on our roads as it will destroy competition in our public transportation system.”

Gustilo said that case in point is the acquisition of Uber by Grab in 2018 when the TNVS monopoly said that the acquisition will lead to better services for drivers and passengers and cheaper fare.

“Fast forward to present, we know for a fact that Grab’s service and their fare is far from what was promised. It has actually worsened and because Grab was able to monopolize the TNVS service, they have actually committed numerous violations.”

Gustilo said that the government should come up with an anti-monopoly measure to ensure that industries will not be thrown into chaos in the event that a company is attempting to consolidate various essential services like public transportation.

“The government should enact a law to prevent companies like Grab who will try to live up to its name and Grab and swallow everything in its sight. The PCC should also enforce its oversight function to intercept any attempt to consolidate numerous services under a single banner.”

Gustilo added that because of the current foothold of Grab on TNVS services, online food ordering and on-demand parcel delivery service, and with their attempt to venture into motorcycle taxi and tricycle hailing services, Grab was able to consciously committ numerous violations of government regulations and abuse its stakeholders.

“The government should ensure that Grab will not monopolize the digital transportation and logistics industry. If it happens, it will kill all competition and throw our public transport system in a chaotic state that may cause irreversible damage to the sector.”

Reference: Ronald Gustilo, Digital Pinoys National Campaigner, www.digitalpinoys.org

Journal Online
A collection of noteworthy information on various topics from the Philippines and the rest of the world.