Motorcycle taxi TWG urged to meet on potential effects of Grab-Move It deal
MANILA, Philippines — A network of digital advocates on Thursday called on the Department of Transportation to reconvene the motorcycle taxi technical working group to address issues raised by commuter groups in the past few days.
In a statement sent to reporters, Digital Pinoys national campaigner Ronald Gustilo said that the DOTr should reconvene the technical working group at the soonest possible time to address concerns arising from the MC taxi pilot study.
"In the absence of a technical working group, several issues, including the acquisition of Move It by Grab, have already arisen and should be addressed immediately."
Motorcycle taxis have become a popular option for commuters who have had to contend with diminished public transportation capacity during the pandemic.
Gustilo also called the stand of Transport Secretary Jaime Bautista to not investigate Grab's acquisition of Move It "unfortunate," given the agency's membership in the technical working group.
"It is unfortunate that this is the view of the transportation secretary, given that they have a leadership role in the TWG. However, the MC Taxi pilot study is a creation of Congress, in aid of legislation. Therefore, it is imperative that they convene the TWG as soon as possible," he said.
Gustilo also said that Grab's offer for a commercial partnership agreement with Move It was already rejected by the TWG.
"Previously, Grab tried to join the pilot study via a commercial partnership agreement with Move It which was rejected by the TWG because it will involve another player outside of the accredited operators," he said.
"In what universe is an acquisition acceptable if a partnership was disallowed? Grab is clearly using Move It so that it can join the pilot study. Whichever way they may say it, Move It is not independent of Grab and is just a mask of the TNVS giant in the MC taxi pilot study."
Fears of overpricing
In September, Digital Pinoys raised fears that the “seeming backdoor entry” of Grab into the Motorcycle Taxi pilot study conducted by the government would end in a repeat of what happened when Grab took over Uber in 2018, calling Grab's participation detrimental to the welfare of the riding public.
“The primary concern of Digital Pinoys is the welfare of the riding public. With the ease of digitalizing public transportation, TNVS and Motorcycle taxis have provided a more convenient option for commuters. However, we fear that with Grab’s backdoor entry, the pilot testing will be jeopardized and that fares will increase,” Gustilo said then in a press conference.
“What used to be a P200 to P250 fare for a 25-kilometer trip is now averaging P500 to P800. There was even a time that it would reach more than P1,000 because of surge pricing. This can also happen to Motorcycle Taxis. And we know that the reason why two-wheeled ride-hailing services are patronized by the consumer is that it is by far much more affordable than using Grab, and then now Grab will acquire Move It.”
Earlier, commuter group The Passenger Forum proposed the government impose taxes on motorcycle taxi firms to help fund its Libreng Sakay subsidies, even amid the ongoing campaign to legalize motorcycle taxis.
TPF Convenor Primo Morillo said that according to the group’s own study, motorcycle drivers earn up to P2,000 daily. This means that even if only a third of an MC company’s 15,000 employees work per day, 5,000 riders can collectively earn P10 million by the end of it.
"Twenty percent of this goes to MC taxi platforms which totals P2 million per day or P60 million per month or P720 million per year," Morillo said. "Government should thus be able to subject these massive revenues to taxation."
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