Grab driver incentive program to be monitored one more year — PCC – BusinessWorld Online
THE Philippine Competition Commission (PCC) said it extended the review period of Grab’s driver incentive system by another year.
In a statement on Wednesday, the PCC said it signed an undertaking with Grab to reinforce its oversight of Grab’s incentive scheme for affiliated drivers.
“(This is to ensure) that such mechanisms safeguard commuter choice and promote fair competition in the ride-hailing market,” the PCC said.
In the undertaking, the ride-hailing company committed to submit quarterly compliance reports for review by a third-party monitor that the PCC will appoint.
Covering the period from May 1, 2023, to Oct. 31, 2023, the review seeks 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 and several other factors, such as trip requirements, duration of incentive policies, coverage, and market behavior,” the PCC said.
“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,” it added.
In a statement on Tuesday, Grab said that while it completed its voluntary commitments by Nov. 2023, the PCC has yet to complete its review of quarterly reports on driver incentives.
“Both parties therefore agreed to extend the review period for one year to allow the PCC to conclude its assessment,” Grab said.
The 2025 undertaking is the third agreement between Grab and the PCC after the ride-hailing company merged with Uber in 2018.
Through the merger, Grab acquired Uber’s ride-hailing and food delivery operations in Southeast Asia in exchange for Uber’s 27.5% stake in Grab. — Justine Irish D. Tabile