LTFRB waiting for Uber reply after it yields Southeast Asian operations to Grab

March 26, 2018

The Land Transportation and Franchising Regulatory Board (LTFRB) will await a manifestation from Uber Philippines following reports that Grab has acquired Uber's operations in Southeast Asia.

"We will be waiting the manifestation to be filed by Uber in due time to address the issues pending before LTFRB," said LTFRB board member Aileen Lizada in a Viber message on Monday.

In a statement by Brian Cu, Grab Philippines head, he said Grab is acquiring Uber's rideshare and food delivery business in Southeast Asia and integrating them into Grab's transportation and fintech platform.

"In exchange, Uber will receive a 27.5 percent in Grab, which is reflective of the companies'respective market shares," said Cu.

There are a total of 59,020 Grab and Uber units in Metro Manila, according to an LTFRB audit. Under a new memorandum circular this January, the LTFRB has raised the allocation for Metro Manila to 65,000.

Lizada said the LTFRB "will continue to monitor the fare set by Grab." She said the LFTRB will hear pending rate hike petition by Grab and Uber on April 3.

The Philippine Competition Commission said it has not been notified  by Grab and Uber about the latest development.

"If the parties meet the new threshold, now set at P2 billion for size of transaction and P5 billion for size party, they should notify the PCC within 30 days after the signing of their collective agreement," said PCC chairman Arsenio Baliasan in a statement. DMS