Developments last week have been favorable to the commuting public, which has

long been suffering from a near monopoly in the ride-hailing sector. The Philippine
Competition Commission (PCC) started by pointing out that a year after Uber left,
ride-hailing has remained uncompetitive, referring to Grab as the very dominant
player in this service.
A virtual monopoly leaves the riding public with no alternative. Competition, on the
other hand, forces players to improve efficiency and lower prices. The near-monopoly
position of Grab explains the numerous complaints on fare surges even beyond rush
hours, canceled bookings and other aggravations that riders have to endure since no
alternative service exists.

At about the same time as the PCC announcement, the Anti-Red Tape Authority
(Arta) called out the the Land Transportation Franchising and Regulatory Board
(LTFRB) for sitting on the applications of transport network vehicle services (TNVS)
drivers. The next day, Transportation Secretary Arthur Tugade directed the LTFRB to
approve all complete but pending applications of these ride-hailing drivers.
The Department of Transportation ordered the LTFRB to immediately release
certificates of public convenience (CPCs) to qualified ride-hailing driver-applicants.
Tugade also directed Transportation Undersecretary for Roads Mark de Leon and the
LTFRB to comply immediately with Arta’s directive to automatically approve all
pending TNVS applications and issue them the corresponding CPCs.
Arta’s action followed complaints from TNVS drivers alleging irregularities in the
processing of their TNVS applications by the LTFRB. According to the complaints,
their applications already had the complete requirements, but they could not operate
as drivers and operators while waiting for the issuance of the CPCs.
Aside from these developments, the PCC announced that it would also renegotiate the
conditions that Grab had previously agreed to when it sought the PCC’s approval of
the Grab-Uber deal, which resulted in the departure of Uber from Southeast Asia.
Those conditions, called voluntary commitments, took effect in August 2018 with the
hope that they would improve market conditions, particularly the maintenance of
reasonable fares that existed when Uber was still around. But those hoped-for
improvements have not materialized.