Philippine government suspends GrabBike operations

The Philippine government has ordered app-based transport company GrabTaxi to stop offering its motorcycle service GrabBike until there’s a set of promulgated guidelines for it.

The Philippines’ Land Transportation Franchising and Regulatory Board (LTFRB) gave out the order on January 21, according to a local report, and it said GrabTaxi was to comply within five days from receipt.

The LTFRB warned the company that failing to do so could result in the cancellation of the group’s transportation network company or TNC accreditation.

“Be reminded that aside from safety issues, bikes and motorcycles are neither authorized by the board nor the Department of Transportation and Communications to be offered to the public as a mode of public transportation,” the LTFRB was quoted as telling GrabTaxi.

GrabTaxi offers taxi, private car (GrabCar), and chopper (GrabHeli) booking services in the Philippines. It started pilot testing GrabBike in key cities in November.

Until this issue, the company has always closely coordinated with the government and complied with its regulations. It was even the first to acquire a TNC license in the Philippines.

Asked if they were willing to comply with the LTFRB’s order, Khriz Lim, GrabBike’s country marketing head, tells Tech in Asia: “The GrabBike team is in discussions with the LTFRB to address the questions raised regarding our operations. We believe in collaborating with the government and transport industry’s stakeholders.”

She adds, “GrabBike is focused on providing convenient and safe rides for passengers and will continue to work with LTFRB towards our shared goal of solving transportation problems for Manila.”

As of this update however, GrabBike is still available in the GrabTaxi app.

(Updated on January 28 to include GrabBike’s statement.)

Source: The Philippine Star