Grab to have 93% PHL market share upon acquisition of Uber, says PCC

Transport network company Grab is seen to dominate the country's app-based ride-hailing service industry once its acquisition of rival Uber is completed, a top official of the Philippine Competition Commission (PCC) said Tuesday.

"Indicative 'pag nag-merge ang Grab at ang Uber ang kanilang market share ay 93 percent na so 7 percent na lang ang matitira sa maliliit," PCC Commissioner Stella Quimbo said in an interview on News to Go.

Quimbo clarified that she does not want to preempt the antitrust watchdog's ongoing review of the Grab-Uber acquisition deal. However, she emphasized that such a large market share might dampen competition for small players.

"'Pag maliit ka mahirap kumumpitensiya sa dambuhala... kung ikaw driver, ikaw ba gusto sumama sa isang maliit na network? Siyempre, hindi. Kung ikaw naman user siyempre ayaw mo sa kaunti ang driver so dahil may ganoong feedback effect napakahirap talaga na ang isang maliit na makipag-kumpitensiya sa dambuhala. So 'yun po ang challenge," she said.

The Land Transportation Franchising and Regulatory Board earlier said that Grab will not monopolize the ride-hailing industry as four players are about to be accredited by the agency.

On Saturday, the PCC formally ordered Grab and Uber to maintain independent operations while it conducts a motu propio review on the acquisition deal. 

The antitrust watchdog released interim measures for Grab and Uber to maintain the independence of their business operations and other conditions prevailing prior to March 25, 2018, which include ride-hailing and delivery platforms; pricing and payment policies including incentives and promotions to riders; product options; customer and rider database; and on-boarding of new partner drivers as well as the fees, charges, and incentives to partner drivers, among other measures.

"Ang order na nilabas namin ay tinatawag na interim measure. Ito ay mga pansamantalang kailangan gawin ng mga kumpanya at hindi dapat gawin ng kumpanya habang kami ay nagre-review," Quimbo said.

As compliance to the interim measures, Uber will continue its operations until April 15 from the original schedule of April 8, when it will it completely shutdown its business and services, with Grab shouldering the expenses. 

"Dito sa Pilipinas hindi pa siya (Uber) nagsa-shutdown... so may indication na nagko-comply naman ang Grab at Uber so ang tanong na lang natin ngayon is fully-compliant ba siya? Sa order namin  kailangan nilang ibalik ang dati nilang operations so kailangan natin bantayan," Quimbo said.

The PCC official said if parties failed to comply with the interim measures, the antitrust watchdog might hold them in contempt and impose fines of P50,000 to P2 million a day until they fully comply. —KBK, GMA News