DOTr suspends Grab-Move It collaboration due to system integration failure

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The technical working group created for the motorcycle-taxi (MC Taxi TWG), composed of the representatives from the Department of Transportation (DOTr), Land Transportation Office (LTO), and the Land Transportation Franchising and Regulatory Board (LTFRB), has suspended the collaboration between Grab and Move It following failure of system integration.

In a letter dated 28 September 2021, the MC-Taxi TWG  composed of B/Gen. Manuel Gonzales (Ret) and P/Col. Joel Pernito (Ret), co-chairmen of the TWG informed Senator Grace Poe, chairperson of the Senate Committee on Public Services of the suspension of the collaboration, the main consideration for which was to obtain more respondents for an ongoing survey on the viability and safety of motorcycle taxis as a public transport mode.

To recall, the agreement was approved by the TWG with the primary intention of getting more data from the general commuters which Grab has the potential to provide through its large subscriber base.

“While we conduct a thorough validation of the complaints and allegations, the MC Taxi TWG has unanimously decided to issue status quo among the parties. The TWG will call all parties concerned and will evaluate the merits while gaining insight from our stakeholders,” TWG said.

The Grab-Move It collaboration was approved on 17 September 2021 by the TWG, and was launched on 23 September 2021. However, the TWG was later informed that the collaboration was not operating in accordance to the agreed parameters and guidelines.

The TWG said the collaboration between Grab and Move It was suspended after two provisions of the agreement were violated: Grab’s application instead of Move It’s application was used to avail, book, and pay for the ride service; and that the entire process of training, driver onboarding, marketing, issuance of official receipts and the use of the Grab Driver app was all undertaken by Grab.

The collaboration project was suspended effective midnight of 29 September 2021, the TWG said.

In addition, the TWG said the motorcycle taxi study does not include a fourth player. It said Grab, through the collaboration was able to find inclusion in the study as a de facto member. The TWG said Grab’s entry is a circumvention of the processes and guidelines that had been laid down at the start of the study.

In a letter sent to Francis Juan, President and CEO of Move It, the TWG explained that it appears that both Grab and Move It were not prepared to engage in the collaboration.

The TWG added that by giving Grab a de-facto membership in the pilot study, it gave the impression that Move It has relinquished its operation to Grab.

Meanwhile, the MC-Taxi TWG has assured that it will still pursue the objective of helping lawmakers in crafting a bill that would eventually lead to the legalization of motorcycle taxis as a mode of public transport.

“The MC TAXI TWG reiterates its role in providing the necessary data to the Congress, highlighting the possible legalization of motorcycles as a form of alternative mass transport for Filipinos, ideally focusing on the safety of its passengers and riders,” the TWG said.

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