Grab to House: Acquisition Move It is over board

Grab Philippines has assured the House of Representatives that the acquisition of Move It is open and in accordance with regulations set by the Department of Transportation’s Technical Working Group (TWG) (DOTr).

Move It said Wednesday during a hearing at the House of Representatives Metro Manila Development Committee on calls from some quarters for the government to reconsider the deal between Grab and Move It.

Move It is one of the firms involved in the motorcycle taxi pilot.

“We are pleased to report that the acquisition was in accordance with the law and all approvals required for the acquisition have been obtained. This did not violate any of the requirements of MC Taxi TWG,” Move It said in a statement read by its lawyer, Ann Albana.

“We want to reassure the public that Move It’s operations will continue to be overseen by TWG MC Taxi and will continue to comply with MC Taxi’s guidelines, especially with regard to consumer safety and welfare.”

Some quarters have argued that the Grab-Move It deal was designed for Grab to gain “instant accreditation” by virtue of the acquisition of Move It, which received TWG accreditation.

But Move It said the arguments against it and Grab are “clearly irrelevant and based simply on conjecture and speculation.”

He added that even after acquiring Move It, it continues to have the accreditation provided by TWG and is in no way passed on to Grab.

He added that even with the acquisition of Grab and Move It, it will remain two distinct and separate entities.

“Thus, the claim that accreditation was transferred to Grab as a result of the acquisition is erroneous and misleading,” Move It said in a statement.

Move It stated that its Certificate of Compliance and Temporary Operating Permit were not transferred to another person even after the acquisition.

“The Certificate of Compliance and Temporary Operating Permit also do not require prior approval by any government agency, including TWG MC Taxi, in the event of a Move It ownership change.”

“Procompetitive”

Moreover, Move It stated that the acquisition was not anti-competitive as Grab does not offer a motorcycle taxi service.

“There are currently other market players that appear to have a stronger presence in the motorcycle hauling market,” Move It said, referring to rival Angkas.

“In fact, this acquisition is aimed at increasing competitiveness and consumer interest. Strengthening Move It will improve and develop competition and meet the growing untapped demand for motorcycle taxis.”

As a result of the acquisition, Move It said it would benefit from Grab’s innovation and economies of scale, and the public “will have access to superior service at competitive prices.”