Transport network vehicle service provider Grab Philippines has acquired motorcycle taxi firm Move It to ramp up services to commuters amid growing demand for more efficient mobility and logistics solutions.
In addition, the acquisition paves the road for Grab to enter the motorcycle taxi business.
“We concluded a deal to acquire Move It’s operation in the Philippines. There’s a change in ownership, but there’s no merger of operations as Grab and Move It will continue operating separately,” Grab Philippines senior director for operations and strategy Ronald Roda told reporters in an interview on Thursday.
Grab will help Move It scale its existing motorcycle taxi fleet of fewer than 1,000. In the pilot study, it will add at least 6,000 more partner riders to maximize its allotment of 7,000 riders.
Roda did not disclose the transaction cost but noted that the amount was “way below” the P1-billion threshold the Philippine Competition Commission set for compulsory notification of mergers and acquisitions.
No legal hurdles
According to Grab Philippines director for public affairs, Sherielysse Bonifacio, the company did a “thorough due diligence” before the purchase was concluded to avoid legal problems.
Bonifacio said both parties also reached out to the Senate and the House of Representatives to discuss legal issues concerning the deal.
Before the buyout, the two companies had a partnership that allowed users to book Move It’s motorcycle taxi-hailing services through the Grab app.
The tie-up was suspended by the Technical Working Group (TWG) formed by the Department of Transportation as it violated the provisions of the motorcycle taxi pilot study.
The TWG also said that the motorcycle taxi study does not include a fourth player. The three players included in the motorcycle taxi pilot study are Angkas, JoyRide, and Move It.
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