MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) sees no problem in allowing Grab Philippines to recruit riders in preparation for the potential launch of its motorcycle taxi service.

Earlier, on February 22, Rappler reported that Grab had already started to recruit and onboard riders for what seemed to be a GrabBike relaunch, even before it obtained approval from the technical working group (TWG) in charge of motorcycle taxies. Grab was inviting riders to apply for its “GrabBike Mototaxi Service” and offering free helmets and long-sleeve shirts for the first applicant, according to forms and promotional materials seen by Rappler.

Now, LTFRB Chairman Teofilo Guadiz III clarified that the TWG has “no existing guidelines that prohibit the recruitment of drivers in preparation for a potential service launch.”

Currently, the operation of motorcycle taxis in the Philippines is limited to a pilot study, which only allows Angkas, JoyRide, and Move It to offer the service. Grab originally did not make the cut, although it still participates in the lucrative motorcycle taxi market through its acquisition of Move It. (READ: Lawmaker urges PCC to keep close watch over Grab acquisition of Move It)

But in late 2023, Grab managed to get into the pilot study as well, paving the way for the launch of its own motorcycle taxi service.

A letter signed by Guadiz dated December 20, 2023 informed Grab about a Department of Transportation opinion that it had “met the basic and operational requirements to qualify as an additional participant” and that there was “no reason to defer Grab’s acquisition” in relation to the Grab-Move It deal.

“With the foregoing opinion, you are hereby notified of Grab’s inclusion in the pilot implementation study,” Guadiz said in the letter below, which was provided in a Grab press release.

In the press release that the LTFRB sent out on Wednesday, the agency confirmed that it had sent Grab a letter about its inclusion in the study. However, as of press time, the LTFRB has yet to provide a copy of the letter or comment on whether this letter was the same one issued in December 2023.

No motorcycle taxi operations yet

Although Grab is part of the pilot study, the LTFRB said that the ride-hailing giant’s “MC Taxi Pilot application is awaiting final regulatory approval.” This means that Grab cannot launch its motorcycle taxi services until it obtains a license from the TWG overseeing the pilot study.

“Concerning the actual activation of any MC Taxi app or service on the Grab app, this agency confirms that Grab is yet to receive full authorization from the MC Taxi TWG,” Guadiz said in a press release on Wednesday, February 28.

The LTFRB also made it clear in a separate letter that Grab is not allowed to operate motorcycle taxis. (READ: GrabBike relaunch? Grab readying its motorcycle taxis even without approval)

“Prefatorily, the Motorcycle Taxi Technical Working Group agrees with your statement that Grab is not authorized to participate in the pilot implementation study or to operate a motorcycle taxi service. At present, only Angkas, JoyRide, and Move It are allowed to participate in the said study,” the LTFRB said in a February 1 letter given to Ariel Inton, Lawyers for Commuter Safety and Protection president.

Nevertheless, Grab continues to gear up for a potential reentry into the the motorcycle taxi market through GrabBike. Grab used to offer the service in the Philippines before the LTFRB ordered it to shut down in 2016, as there were no government regulations for motorcycle services at the time.

The government’s stance is likely to change soon. In a press release on Tuesday, February 27, Grab said that it “believes that its track record of innovation, coupled with its commitment to social progress, strategically positions itself as a strong candidate for any regulatory approval.”

“The MC Taxi sector has so much potential for creating jobs and improving transportation, which can be fully realized with the legalization of this sector. And Grab is fully committed to playing an active role in making this happen for our kababayans,” said Grab Philippines chief operating officer Ronald Roda.

The ride-hailing giant reported that it helped ease unemployment by 1.1% from 2019 to 2021 and that in 2023, its on-demand rides and delivery business has generated “over 100,000 new livelihood opportunities.” – Rappler.com