MANILA, Philippines – Grab Philippines wants to bring its private car service GrabCar to 4 other cities where it has already established its presence. But to do this, the Land Transportation Franchising and Regulatory Board (LTFRB) will have to lift its moratorium on applications for transportation network vehicle services (TNVS).
Grab Philippines Country Head Brian Cu said that his company has already lobbied the LTFRB to lift its application suspensions for TNVS, a transport category for application-based four-wheeled vehicles.
The lifting of LTFRB's moratorium is needed before Grab can expand its GrabCar services to Davao, Iloilo, Baguio, and Cagayan de Oro. (READ: GrabTaxi rebrands as Grab, eyes further expansion)
"As much as we would like to expand to all these cities, there is still a franchise suspension by LTFRB," Cu said on the sidelines of an event in Taguig City on Thursday, February 16.
Grab currently has its GrabCar service in Metro Manila, Cebu, and Bacolod.
"We have lobbied [to the LTFRB]. Just very recently. So right now, nothing is happening yet. I think they are waiting for the omnibus franchise policy. Right now, it is just a memorandum circular," Cu said.
It was in July 2016 when LTFRB suspended applications for TNVS due to the surge of applicants and the review of their fare scheme.
Still double-digit growth
Cu said when it comes to profit, Grab Philippines "expects double-digit revenue growth in 2016." This is despite the "stunted expansion" due to the LTFRB moratorium.
"In 2016, demand was still strong. Up to now, we are still continuing to see demand. We believe we solve a present need that is why we are working with the legislation," Grab Philippines' country head said.
Data from Grab
Grab on Thursday, February 16, announced the regional launch of GrabShare, the company's first on-demand commercial carpooling service, with its introduction in the Philippines and Malaysia.
In exchange for sharing their ride, passengers enjoy cheaper fares and a maximum of only one additional detour. Meanwhile, drivers earn more by completing two bookings in one trip.
To help win the Southeast Asian market, Grab VP for Marketing Cheryl Goh had earlier said her company was taking a friendlier road than its rivals.
While some of Grab's rivals have developed a reputation for being combative, Goh had said they are leaning towards a "more open and collaborative working environment" with regulators. – Rappler.com