THE Philippine Competition Commission (PCC) has tapped a London-based audit firm to monitor and evaluate Grab Philippines for one year in complying with the government’s commitment decision on the ride-hailing app.
In a statement on Wednesday, the PCC said it appointed British auditor Smith & Williamson (S&W) as the independent third-party monitor trustee tasked to track Grab. The auditor will monitor Grab’s compliance on conditions that are part of its voluntary commitments in acquiring Uber.
“The PCC considered candidates for appointment as monitor, including two nominees submitted by Grab. The selection process considered knowledge in competition law, expertise, years in practice and familiarity with the relevant market, among others,” the statement read.
“After a thorough evaluation, S&W was determined as the most suited to conduct monitoring compliance with the parties’ voluntary commitments in the Grab case. Their track record on competition cases includes the most recent task of monitoring Grab-Uber on the interim measures directions in Singapore,” it added.
S&W is one of the United Kingdom’s top 10 firms with global reach, including the Philippines. It has over 100 years of experience as an auditor and 13 years of reporting to various competition authorities across jurisdictions.
As the monitoring group mandated to audit Grab, S&W must ensure the transport network vehicle service (TNVS) company complies with the PCC’s commitment decision.
This includes service quality commitment, wherein Grab shall bring back market averages for acceptance and cancellation rates before the transaction and response time to rider complaints. The desired result must be reduced cancellation rates and shorter waiting time for customers. Grab should also revise its trip receipt as a commitment to fare transparency. The new receipt must display the fare breakdown per trip, including distance, fare surges, discounts, promo reductions and per-minute waiting charge, if reinstated by the government.
To ensure fare predictability based on predetermined factors, such as distance and travel time, Grab was also instructed to deviate from charging extraordinary fees from the minimum allowed fares. Grab will be penalized equivalent to 5 percent of its commissions, or up to P2 million, in trips identified with extraordinary deviations.
Grab was also directed to remove its feature that allows drivers with low ride-acceptance rates to see the destination of their riders. This is to avoid discrimination among passengers based on their destination—a common complaint against taxi drivers.
The commitment decision also covered nonexclusivity of drivers and operators; monitoring of incentives; and Grab’s improvement plan.
PCC Chairman Arsenio M. Balisacan pinned his hopes on S&W to keep an eye on Grab’s activities, as it now stands as the strongest, if not the lone wolf, TNVS in the country.
“It is one thing to pledge and another thing to carry out the voluntary commitments that bind Grab Philippines to address the competition concerns,” he said.
“Smith & Williamson, as the independent monitoring group, will serve as our eyes and ears on the ground. Their reports or recommendations will be evaluated, but the PCC will still ultimately determine any possible transgressions,” Balisacan added.
The PCC vowed to scrutinize any breach of the conditions that will subject Grab to fines up to P2 million per breach, or unwinding of the transaction. Violations or arrangements aimed at circumventing the application of the commitments by parties will likewise lead to appropriate penalties, it warned.
Meanwhile, Grab said in a statement that is satisfied with the decision of the PCC to tap S&W as the independent third-party monitor trustee. The firm added it has previously worked with the London-based auditor in Singapore, and found its judgments “truly fair and independent.”
“We are looking forward to collaborating with them as we intend to fully conform with and fulfill the voluntary commitments we have submitted to the PCC for the entire duration of the agreed compliance period,” the statement read. With Lorenz S. Marasigan
Image credits: Alysa Salen