Move It says it remains as 3rd motorcycle taxi pilot player, not Grab

Move It on Thursday said it remains as the third player in the government-backed pilot study for the viability of motorcycle taxis as a mode of public transport after the company was acquired by Grab Philippines.

“There are only three motorcycle taxi companies – Angkas, Joyride, and Move It – and Grab, by acquiring Move It, does not become a fourth player,” Francis Juan, Move It chairman, said in a statement.

To recall, transport groups Lawyers for Commuters Safety and Protection, National Public Transport Coalition, ARANGKADA Riders Alliance, and Digital Pinoys signed a petition addressed to the Department of Transportation (DOTr) and Land Transportation Franchising and Regulatory Board’s (LTFRB) inter-agency technical working group (TWG) in charge of conducting the pilot test of motorcycle taxi services in the country, calling for a review of Grab Philippines’ acquisition of Move It.

The groups raised concern that following the acquisition, Grab will be automatically accredited in the pilot study.

In August, Grab Philippines acquired Move It for an undisclosed amount.

Grab said that despite the acquisition, Move It will continue to operate as a separate entity and use its own platform.

Juan explained that if an individual buys a franchised tricycle of another, the buyer does not become a second franchisee but only the owner of the tricycle.

In the same manner, he said Move It, since it has its own legal personality, owns its accreditation as a motorcycle taxi business and this accreditation stays with it regardless of who owns the company.

Last year, Grab announced a partnership with Move It that enabled the latter’s motorcycle taxi hailing services to be booked through the Grab app.

The partnership, however, was stopped by the DOTr’s Motorcycle Taxi Technical Working Group (TWG), saying the collaboration violated provisions of the motorcycle taxi pilot study.

The TWG said this is because Grab’s application, instead of Move It's application, was used to avail, book, and pay for the ride services; and because the entire process of training, driver onboarding, marketing, issuance of official receipts and the use of the Grab Driver app was all undertaken by Grab.

The TWG also said that the motorcycle taxi study does not include a fourth player. The three players included in the motorcycle taxi pilot study are Angkas, JoyRide, and Move It.

The TWG said Grab, through the collaboration, was able to find inclusion in the study as a “de facto” member, which could have given the impression that Move It relinquished its operations to Grab.

“The losers then were the riding public. Move It, being too small, could not compete. If the same unfounded allegations succeed this time around, the public would again be the losers. There must be competition for services to improve and fares to go down,” Juan said.

Move It has since explained that while Grab acquired the company its “accreditation remains its own and does not transfer to Grab.”

Move It said it is a legitimate and law-abiding participant in the motorcycle taxi pilot study, and “we stand for democratizing MC taxi service to serve more Filipinos.”

Grab-Moveit to benefit commuters

Consumer advocacy group CitizenWatch Philippines welcomed the partnership of the two ride-hailing services, saying the move will promote competition for the benefit of the riding public.

“CitizenWatch Philippines believes that competition ultimately redounds to the benefit of the consumers. Players in any given field must not shun competition but instead welcome it as an opportunity to improve themselves and strive to work better for the public,” Lawyer Time Abejo, CitizenWatch Philippines co-convenor, said in a statement.

Abejo said the deal would “help alleviate the public transportation crisis besetting commuters".

“The investment deal between Grab and MoveIt was conceived as a response to the difficulties encountered by the riding public especially as the economy reopens and schools resume face-to-face classes,” Abejo said.

“The current state of public transportation has been having difficulty coping with the influx of daily commuters, leaving them literally and figuratively stranded as they make their way back into the new normal.  Other options are simply too expensive for the average income earner or allowance receiver to afford," he added. —AOL/NB, GMA News