Grab has virtual monopoly of driver, customer base – PCC

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Metro Manila (CNN Philippines, May 28) – Ride-hailing company Grab Philippines has the virtual monopoly of both the driver and customer base, the country's competition commission said on Monday.

The Philippine Competition Commission (PCC), in its review, expressed its concern about Grab's surge fares despite the supposed increase in its supply of drivers.

It added the loss of competition has led to a spike in driver and trip cancellations, including longer waiting time.

"Passenger surveys and interviews likewise indicate more driver cancellations, forced cancellation of rides, and longer waiting times," it said in its review.

PCC said the entry of several new transport network companies did not provide sufficient competition, saying it will take time for these new players to build a base of drivers and riders that can compete with Grab.

Related: Get to know the new transport network companies  

PCC opened a review of the deal on April 3 over concerns of a possible monopoly after Grab acquired its ride-sharing rival Uber in March.

Grab was given until June 1 to reply to PCC's concerns.

"Hintayin natin ano comments nila, maaari ring mag offer sila ng commitments, voluntary commitments. Otherwise magpo-proceed tayo doon sa adjudication na mismo para ang commission magkaroon ng desisyon sa kaso," PCC Chair Arsenio Balisacan said.

CNN Philippines correspondent Makoi Popioco contributed to this report.