DOTr chief Bautista not keen on reviewing Grab-Move It deal

Transportation Secretary Jaime Bautista sees no legal issues with the acquisition of motorcycle taxi firm Move It by Grab Philippines, saying his department is not keen on reviewing the transaction.

At the sidelines of the Economic Journalists Association of the Philippines-MVP Group Infrastructure Forum on Monday in Pasay City, Bautista was asked by reporters if the Grab-Move It deal was illegal.

In response, the Transportation chief said, “Hindi naman sa tingin ko [I don't think so].”

Various transport groups have 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 calling for a review of the transaction.

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

Bautista, however, said that there is no need for the DOTr to review the deal.

“Hindi, kasi private transaction ‘yan [No, because it is a private transaction],” he said.

“Ang tinitignan namin [What we are looking at] is how they can operate more efficiently and safely,” he said.

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.

Move It also said that while it was acquired by Grab, it remains as the third motorcycle taxi player in the government-backed pilot study for the viability of motorcycle taxis as a mode of public transport. 

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.

Bautista said the pilot study for motorcycle taxis is ongoing for the DOTr to acquire further information “in aid of legislation.”

“Sana nga magkaroon na ng batas tungkol diyan eh kasi wala kaming binibigay na franchise sa kanila. We just allow them to operate but hopefully ‘yung Congress natin can enact a bill… [so] can we give franchise to the motorcycle taxis,” he said.

(We hope a law can be passed about this because we cannot give franchises to them. We just allow them to operate but hopefully our Congress can enact a bill… so we can give franchise to motorcycle taxis.) —KBK, GMA News