The Department of Transportation sees no legal issues with Grab Philippines’ acquisition of Move IT, a local transport solutions provider, as it pushes for the motorcycle taxi legalization in the country.
Transportation Secretary Jaime Bautista told reporters there was no need to review the deal between Grab and Move IT, “because it is a private transaction.”
“What we are looking at is how they [Grab and Move IT] can operate more efficiently and safely. That’s our concern,” Bautista told reporters on the sidelines of 2022 Economic Journalists Association of the Philippines Infrastructure Forum.
Bautista said he saw nothing illegal about the transaction.
Grab Philippines acquired Move IT in August to help and improve the latter’s operations and serve more commuters.
Grab Philippines will also work with Move IT to further enhance its safety and service quality standards and be at par with Grab’s motorcycle taxi services across Southeast Asia.
Move IT independently operated using its existing technology and app and will continue to comply with the standards set by the DOTr’s Motorcycle Taxi Pilot Program.
“We are allowing motorcycle taxis to operate because we are getting information in aid of legislation,” Bautista said.
“Hopefully, Congress can enact a law to issue franchises to motorcycle taxis,” he said.
Angkas has 20,000 to 27,000 partners riders, despite the cap of 15,000 riders for each player. Under the pilot study, Angkas, Move IT and JoyRide are allowed to have 15,000 riders each in Metro Manila and additional 3,000 in Metro Cebu and another 3,000 riders each for Cagayan de Oro.
Move IT earlier urged the government to open up the motorcycle taxi industry to “free and open competition” for the benefit of the riding public.
“Limiting the MC taxi business to three benefits only us―Angkas, Joyride and Move It –and not the public,” said Move IT chairman Francis Juan.
Juan said Move IT has around 1,000 drivers at the moment, compared to 30,000 of the industry leader.