Grab’s inclusion in motorcycle taxi study under probe, says LTO chief

Land Transportation Office (LTO) chief Vigor Mendoza said Wednesday that Grab's approval as one of the players in the motorcycle taxi pilot study is still under investigation. 

In a press release, Mendoza urged for a six-month extension of the study to accommodate the anticipated entry of seven new players in the motorcycle taxi pilot study.

Mendoza highlighted the significance of the forthcoming entrants, including Cloud Panda Philippines Inc., Taxi Philippines Inc., E Pick Me Up Inc., Easy Way Transport Service and Multipurpose Cooperative, Para Express Technology Services Inc., Grab Philippines, and Market Innovators Inc. 

The LTO chief, however, said that while the applications of these new players are pending approval, Grab's entry is under scrutiny due to a legal complication arising from its acquisition of Move It.

“We have already done the ocular inspections of premises of these applicants, and we are about to approve their applicant subject to the consideration of the committee. Except for Grab Philippines, since there is a legal issue on the table regarding the buyout of Grab Philippines on one of the current participants, Move It. That’s being discussed right now whether that is an impediment to the study or will it bolster the study even further,” Mendoza said. 

Rides, delivery, food. and retail platform Grab Philippines announced in August last year that it had acquired motorcycle taxi firm Move It, paving the way for the company to enter the motorcycle taxi market.

Move It thereafter defended its acquisition by Grab Philippines, and questioned why the transaction is being dubbed as a "backdoor entry" into the government's pilot run of motorcycle taxis.

Move It general manager Wayne Jacinto said the acquisition by Grab was done to boost the firm's services and provide more jobs to prospective riders.—LDF, GMA Integrated News