Grab is funding the continuous service of Uber app in the Philippines to comply with the Philippine Competition Commission’s (PCC) order to keep the service running until April 15. This translates to a one-week extension from the initially planned shutdown of the app on April 8.
The antitrust commission has asked the two transport network companies (TNCs) to keep separate operations while a review is being set about the impact to competition of the merger (in the Philippines).
In a press conference facilitated by Grab on Monday (April 9), Grab disclosed that it has been shouldering the costs of keeping the Uber app up across Southeast Asia since the deal to combine the two operations in the region was closed. It said doing so is paving the way for migration of Uber drivers and passengers into Grab.
It also reiterated that Uber’s operations are also getting an extension in Singapore for the same reason. Grab revealed that even if it is funding Uber’s remaining days of operations in the country and in the region, the ride-hailing app’s system is still being managed by Uber’s main office in the U.S.
Over the weekend, the Land Transportation Franchising and Regulatory Board (LTFRB) said it would be for the best interest of all parties involved if Uber’s operations would cease as scheduled. The agency pointed out that since only two employees are retained by Uber in the country during this period of transition, there is no more sufficient back-end support to process any passenger complaint or safety issue.
Grab also hinted that it is open to welcoming other TNCs as possible competitors in the future. The LTFRB recently disclosed that it is in the process of accrediting three to four new TNCs that intend to get into the local ride-hailing industry.
Meanwhile, numerous loyal users of Uber app are already noticing difficulty in booking Uber rides in specific areas in the metro, particularly during specific times of the day. According to sources, many of Uber’s drivers have already shifted to using Grab app after submitting all requirements and undergoing retraining in Libis, Quezon City.