On the Grab – Uber merger
A couple of weeks ago, I received a message from Uber confirming what was in the news for some time then, and what was rumoured a longer while back. Uber Philippines was closing shop after merging with main competitor Grab, while the mother company also acquiring a stake in Grab. Later, I also received a message from Grab (I use either depending on availability and cost.) welcoming Uber users to Grab.
The result so far has been frustrating if not disappointing to many who have relied on Uber for commuting and the typical trips that you usually associate with taking a taxi.
Recent news revealed that Grab is using an even more punitive pricing scheme compared to Uber’s surge pricing. While the LTFRB moved to scrap this, Grab has been apprehensive, stating that this was an incentive for their drivers. There is actually another side to the concept of surge pricing that LTFRB does not or seems to refuse to understand. That is, that dynamic and more expensive fares related to congestion (or road conditions) is something that’s actually related to the concept of congestion pricing. This actually penalises the use of vehicles like private cars or taxis in favour of higher capacity transport like buses or, if available, trains.
Even more recent is the news that Grab is suspending about 500 of its drivers for excessive cancellation and/or rejection of trips. Unlike Uber before, Grab drivers have the “luxury” of knowing where a potential passenger is heading. That gives the driver the option to accept or reject a proposed fare. Uber drivers didn’t know where the potential passenger was heading and to my knowledge, was stricter with penalising their drivers. The only caveat I know is that passengers can also be penalised if the driver requests for a cancellation and the passenger obliges out of good faith (e.g., An Uber driver in Cebu requested me to cancel the request as he claimed he was caught in traffic and would be penalised if he canceled. I ended up protesting Uber penalising me 100 pesos for my cancellation. Uber did not act on it in my favour.).
The issues surrounding the Grab/Uber merger though should not be there in the first place if we had good taxi services. When I say good I am referring to the quality of service provided by taxis in Singapore and Japan. Of course, they also have good public transportation there so there’s also a case for what most people will likely be taking instead of cars and taxis (which operate similarly as cars). One wonders how and why LTFRB seems to be so strict vs TNCs while being lax with taxis. Meanwhile, DOTr is scrambling on the desperate catch-up work it has to do about mass transit lines and public transport rationalisation. Good luck to us commuters!