MANILA Senator Joseph Victor Ejercito on Thursday hailed the decision of the Philippine Competition Commission (PCC) to investigate the merger of transport network vehicle service (TNVS) companies Grab and Uber, saying the merger virtually eliminates any form of competition.
I welcome the decision of the PCC to investigate Grab's acquisition of its rival, Uber. I am worried that the deal will be extremely detrimental to commuters because the merger will create a monopoly in the ride-sharing sector which has become very popular as a means to address transportation shortage and problems in the Philippines, Ejercito said in a statement.
On March 26, Singapore-based Grab acquired Uber's Southeast Asia operations, covering ride-sharing services in the Philippines, as well as Uber's operations in Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, and Vietnam.
Uber's last day of operations in the Philippines will be on April 8.
Ejercito noted that the merger has virtually created a monopoly, raising the risks of higher fares.
With Grab capturing 80 percent of the market with this merger, the market will virtually eliminate any form of competition thereby increasing the possibility of riders paying higher fares, and diminished incentives to improve services, he said.
He said the PCC probe into the Grab-Uber merger, as well as similar probes in Singapore and Malaysia by their respective regulators, are a welcome development.
We need to protect our commuters by offering improvements in terms of quantity and quality in transportation instead of limiting their choices. I hope the PCC will prioritize public welfare over corporate interests, Ejercito said.
Source: Philippine News Agency