Explain Uber shutdown, Grab told

MANILA, Philippines — The Philippine Competition Commission (PCC) has given Grab and Uber until today to explain the shutdown of the Uber app yesterday.

Uber yesterday advised its customers that the “Uber app will cease to be available in the Philippines starting April 16.”

This is despite an earlier order from the PCC mandating both Grab and Uber to continue operating their applications separately until it completes the review of their merger.

“Uber users have received e-mails with a direct endorsement to transfer to Grab with it as sole provider of ride-sharing service. PCC is aware that there are many factors that led to the shutdown of the Uber app,” the antitrust authority said.

While the development “may have rendered the review conditions to be less than ideal,” the PCC said it would not derail the review of the Grab-Uber transaction to determine if the antitrust law was violated.

The PCC vowed to expedite the completion of the review ahead of the allowed timeframe given the importance of the transaction to the public.

The commission said Grab’s buyout of Uber would result to 93 percent of the ride-hailing market being under one entity.

While the accreditation of new TNCs is a welcome development to allow passengers to have more choices, the PCC expressed concern that the incoming TNCs are left with only seven percent share in the market.

“Established firms have the advantage of an existing user base due to network effects. This means that when you buy a firm, in effect, you also get its customer base. This is an advantage that a newcomer does not have. PCC’s review will take into consideration these factors to level the playing field in this market,” it said.