PCC extends review of Grab’s driver incentive scheme

MANILA, Philippines — The Philippine Competition Commission (PCC) is extending its review of Grab Philippines’ driver incentive scheme for one year as part of its monitoring following the latter’s acquisition of Uber’s Southeast Asia business in 2018.

In a statement , the PCC said an undertaking was signed with the ride-hailing giant on Sept. 16 for the continued monitoring of the latter’s compliance with voluntary commitments.

In a statement, Grab said that while its voluntary commitments ended in November 2023, the PCC has yet to complete its review of quarterly reports covering driver incentives.

The undertaking to extend the review period is aimed at allowing the PCC to conclude its assessment.

As part of the undertaking, the PCC will review Grab’s compliance reports for the 15th monitoring quarter (May to July 2023) and 16th monitoring quarter (August to October 2023).

The PCC said the review would apply exclusively to GrabCar operations in Metro Manila.

A third party monitor will be appointed by the PCC for the review to assess whether Grab’s incentive schemes violate its non-exclusivity commitments by discouraging drivers and operators from joining competing platforms.

The assessment will be guided by an incentives monitoring framework, as well as trip requirements, duration of incentive policies, coverage and market behavior.

“If the effects-based assessment determines that Grab’s incentives violate the Philippine Competition Act, the PCC shall have the authority to take enforcement action and impose penalties,” the antitrust body said.

Sherielysse Bonifacio, chief corporate affairs officer at Grab said the company has always been committed to complying with government regulations as part of its responsibility to commuters and to the Philippine transport sector.