Lawmakers want more Grab operators

Congressmen urged the government yesterday to allow more transport network service (TNS) operators like Grab and Uber.

They made the appeal as they warned authorities that the merger of Grab and Uber could mean higher fares.

Isabela Rep. Rodolfo Albano III said the government should encourage other foreign TNS companies to enter the domestic market.

Local entrepreneurs should also consider going into the ride-hailing business and give their foreign counterparts a run for their money, he said.

“There is a huge demand for this service due to the inefficiency of public transportation. The more TNS service providers there are, the better for the riding public,” Albano said.

Makati Rep. Luis Campos Jr. said GoJek, the largest TNS operator in Indonesia, should operate here and compete with the merged Grab-Uber.

On the other hand, Rep. Ciriaco Calalang of party-list group Kabayan said U-hop, a small domestic TNS company, should expand to give commuters a wider choice.

They and other lawmakers said the consolidation of Grab and Uber would bring about a monopoly.

“This monopoly would leave the public at the mercy of a single mega TNS company that would be able to dictate fare prices and be less enthusiastic in improving its services, knowing that riders are left with very limited options,” Camarines Sur Rep. Luis Raymund Villafuerte said.

Villafuerte said regulatory authority over TNS providers like Grab and Uber should be transferred from the Land Transportation Franchising and Regulatory Board (LTFRB) to the Department of Transportation “so the government would be more responsive to the needs of the riding public.”

He said the LTFRB has been coming up with “ill-conceived” guidelines for these companies because of its misguided interpretation on the role of these service providers.

“The board treats TNS providers as common carriers like taxicabs and passenger buses when the nature of the service they provide clearly shows that they are not. This is probably the reason it is having a hard time coming up with guidelines,” he added.

Quezon City Rep. Winston Castelo said the LTFRB and the Philippine Competition Commission should ensure that the monopoly resulting from Grab-Uber merger does not lead to abuses.

“We have a pretty bad experience with monopolies. Grab will no longer have serious competition. But that should not mean that Grab can charge fares at will, especially during peak hours, and make commuters suffer,” he said.

In urging Go-Jek to enter the Philippine market, Campos said the Grab-Uber consolidation effectively eliminates competition in the local TNS industry.

He said the entry of more players would benefit riders.

“Three players are better than two. But if we can’t have three, two is better than one,” he said.

Grab and Uber were the two most dominant TNS providers before the former’s buyout of the latter’s operations here and some other Asian countries.