Don’t blame the LTFRB for this guys
In a few months time, there will be no more Uber here in the Philippines. No, it is not LTFRB’s fault, despite the agency’s numerous tirades against the ride-hailing service.
Instead, it is because of Uber closing in a deal with Grab for its Southeast Asia operations, which has been in the news a few months ago.
In a report by Bloomberg, the deal involves Grab buying Uber’s Southeast Asia operations in exchange for a stake at Grab’s board. The deal is reported to be similar to what Uber did with Chinese ride-hailing company Didi Chuxing two years ago.
The reason for this? Among the possible causes is that Uber is trying to recover its financials in preparation for an Initial Public Offering (IPO) next year. Another reason is that Grab, which is a Singapore-based company, understands the needs of Southeast Asian commuters better than Uber.
The implications of this move would mean that Grab will no longer have any rivals here in the Philippines. It may sound like Grab will be monopolizing the ride-hailing service, but let’s consider that there are other small players like Angkas, MiCab, and Wunder that offer similar services at competitive prices.
As for existing Uber drivers, we have to wait for Uber’s plan for them should they pull out of the Philippines for good.
Source: Bloomberg
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