Blog

Introduction

As Digital Pinoys, a committed consumer advocacy group in the Philippines, we write to you to express our reservations on the potential entry of Grab Bike into the country’s motorcycle (MC) taxi industry. In this paper, we explore various facets of this development, focusing on its impact on market dynamics, consumer welfare, and the broader implications for competition and regulation in the industry. Our goal is to provide a comprehensive perspective on how this move could reshape the competitive landscape, highlighting insights for stakeholders to consider.

Digital Pinoys commends the proposed expansion of the Motorcycle Taxi Pilot Program

We commend the proposed expansion of the motorcycle (MC) taxi pilot program by the MC Taxi Technical Working Group (TWG), recognizing its potential to alleviate traffic congestion and provide efficient transportation solutions for our commuters. The positive impact witnessed during the initial phase underscores the importance of integrating motorcycles into the broader transportation ecosystem. This expansion promises increased accessibility, especially in areas underserved by traditional modes of public transportation.

Digital Pinoys recommends that the expansion of the Motorcycle Taxi Pilot Program be focused on additional service areas

Digital Pinoys agrees with the recommendation that the MC Taxi Pilot Program should expand to new areas where it is most needed and where its impact may truly be maximized. We agree with the TWG that these areas should take into account (a) economic and transportation sector impact; (b) potential to drive regional growth; and (c) potential to increase employment.

Digital Pinoys expresses its opposition against the entry of Grab Philippines and Grab Bike into the Motorcycle Taxi Pilot Program

However, our enthusiasm is tempered as the technical working group now considers the entry of Grab Philippines, specifically Grab Bike, into the MC taxi pilot program. You may recall that Digital Pinoys has consistently raised concerns about Grab’s monopolistic practices and its impact on the diversity and competitiveness within the transportation industry, including the motorcycle taxi sector.

While we desire a more inclusive approach that encourages the participation of multiple stakeholders and ensures a healthy market that fosters innovation and provides consumers with a range of choices, allowing Grab’s entry into the program may have negative effects on the market. We would like to remind the TWG that the issue of Grab’s backdoor entry into the MC taxi program via their acquisition of Move It is still being questioned. Allowing another Grab entity into the program will give them an undue advantage over other players.

Regulatory framework

Furthermore, we stress the need for stringent regulations and oversight to maintain safety standards and protect both riders and passengers. The successful implementation of the pilot program relies on a comprehensive framework that addresses concerns such as insurance coverage, rider training, and adherence to traffic regulations.

As the program expands, it is crucial to prioritize the safety of all participants and establish clear guidelines that prevent any compromise on this front. The TWG should ensure that the market will not be saturated due to the inclusion of new players. The number of new players should be carefully studied.

Conclusion

In conclusion, we welcome the broader implementation of the motorcycle taxi pilot program as a step towards creating a more efficient and accessible transportation network.

However, we urge policymakers to carefully consider the implications of including specific providers like Grab Philippines, emphasizing the importance of a diverse and competitive landscape for the long-term success of this initiative.

Balancing expansion with fair competition and robust safety measures will ultimately lead to a MC taxi program that benefits both commuters and the broader community.