The Philippine Competition Commission (PCC) is not keen on imposing a cap on the number of motorcycle taxis plying the country’s roads because it would encourage more players to enter the country’s growing motorcycle taxi industry and benefit commuters.
These were the points stressed by a representative of the PCC who participated in the recent joint hearing of the Senate Committees on Public Services and Local Government that tackled proposed measures to regulate and legalize motorcycles-for-hire to ensure they are safe, efficient and affordable as a mode of public transportation.
Asked by Senate Committee on Public Services Chairperson Grace Poe on the possible entry of Grab Philippines in the motorcycle taxi industry, PCC Executive Director Kenneth Tanate said: “In terms of market situation, more players would be better for consumers.”
“If we are going to apply competition principles, no cap would be better given that it would benefit the consumers,” Tanate added in addressing concerns on capping the number to motorcycle taxis that would be allowed to operate.
In the guidelines of the Department of Transportation-backed Technical Working Group, only three transportation network companies are allowed to operate under the three-year-old pilot program. They are Angkas, whose estimated market share is more than 50%, JoyRide and Move It.
The equal allocations for the three in pilot areas are as follows: 45,000 in the NCR, 9,000 in Cebu and 9,000 in Cagayan De Oro.
Poe, who supports the legalization of motorcycles-for-hire through a law, said the non-imposition of a cap was an “interesting thought” and even sought the experience of Grab in other countries where it operates.
“In terms of slots, there is no cap for motorcycles in the countries we operate,” said Grab Senior Executive Vice President Lim Yew Heng, who is based in Singapore. Grab operates motorcycle taxis in Indonesia, Vietnam and Thailand.
In a statement submitted to the Senate panels, Lim said that Grab is backing proposed bills to legalize motorcycle taxis, saying that a “well-regulated and inclusive framework for motorcycle taxis in the Philippines can bring significant benefits.”
“Passing a law that regulates motorcycle taxis stabilizes the regulatory environment, which will encourage healthy competition. The sooner this is done, the better for consumers, who under the current setup can only choose between three motorcycle taxi companies,” the Grab executive said.
And with around 2.5 million new motorcycles registered annually in the Philippines, Lim added, legalizing motorcycle taxis can provide livelihood opportunities for Filipinos and additional revenue stream for the government.