By Melissa Luz T. Lopez, Senior Reporter
THE ACCREDITATION of new mobile ride-hailing services does not automatically end Grab Philippines’ “virtual monopoly” of the local market, the country’s antitrust chief said.
“It’s a big challenge to get the new entrants to attract drivers, to attract riders. It’s not enough that there are new players — the challenge is how do you get them to attract riders and the drivers?” Philippine Competition Commission (PCC) Chairman Arsenio M. Balisacan said on the sidelines of a forum at the Asian Development Bank on Friday.
Earlier this month, the Land Transportation Franchising and Regulatory Board (LTFRB) accredited two transport network companies (TNCs). This comes a month after Uber Philippines left Asian markets and sold its assets to Grab.
The LTFRB recently approved the applications of Davao-based taxi-hailing app Hirna, as well as ride-sharing service Hype Transport Systems, Inc.
The accreditation and entry of new TNCs in Metro Manila is expected to provide much-needed competition after Uber Philippines’ exit.
The PCC initiated its own investigation into Grab’s acquisition of Uber’s operations, saying that it leads to a “virtual monopolization” of the ride-sharing market in the country.
In an earlier statement, the PCC said Grab’s buyout of Uber will entail “gobbling up 93% of the ride-hailing market” in the Philippines, pointing out that new TNCs can only capture seven percent of the industry.
Pending results of the PCC’s review, the watchdog asked Uber to continue operating until April 15. Other interim measures proposed by the competition body include prescribing Grab and Uber to refrain from sharing confidential information and from imposing exclusivity clauses, lock-in periods or termination fees on Uber drivers seeking to join the Grab network.
Mr. Balisacan clarified that the PCC has not yet ruled on the motion of reconsideration filed by both parties on the extension ordered for Uber’s operations in the country. He added that they are currently looking at “various remedies” to maintain competition in the ride-sharing market, in order to arm the public with transport options.
The PCC chief added that the body is “interested to collaborate” with other competition authorities in Asia over Uber and Grab’s case, saying that they have already touched base with the Competition and Consumer Commission of Singapore, which has also cracked the whip on the acquisition.
