Uber Philippines shocked the country when it notified its users of a major change. It would cease all of its operations and merge with its staunchest competitor, Grab. From two major ride-hailing apps to just one, the entire country was thrown for a loop—raising questions as to how this massive change will affect the lives of riders and drivers.
As commuters’ disdain for public transportation continued to grow at an exponential rate, the coming of Grab and Uber was a godsend. With these apps, people could ensure themselves a ride without fearing for their safety. So it came without much surprise that these ride-hailing apps quickly became a part of the daily commute, a necessity even.
So when Uber announced that it would give up almost all of its operations to its competitor, riders felt a tad nervous about the change. Some online reactions were more violent than others, lashing out on everyone from Uber to the LTFRB as they coped with the loss of the app. Naturally, they were concerned that the disappearance of one app meant a limited supply of drivers and therefore a surge in pricing. A cost of a ride can shoot up during busy hours due to the limited supply of drivers and the massive demand, and now with only one app taking the load, riders felt as if these surges will end up becoming commonplace. There was also the fear that if drivers of Grab become picky and refuse to accept a difficult trip, then there’d be no alternative to turn to.
Grab reassured its customers that they need not worry. Confident in their abilities and newfound resources, they stated that pricing would stay the same along with the possibility of more drivers and lesser wait times.
However, the loss of Uber raises one other concern. Uber and Grab were the only two ride hailing apps in a country where commuting was an integral part of life. This led each company to put their best foot forward, lest the other pull ahead of them. At first, the two companies offered the same service, until Grab started to offer an accumulated rewards system to entice repeated use. While Grab offered delivery services and the use of taxis, both of which are cheaper alternatives, Uber has always been on the opposite end of the spectrum—offering the premium service UberBlack. When one moved, the other would respond: From unveiling carpooling options to help save the customer money (UberPool and GrabShare) to in-app messaging to help drivers and riders communicate with one another. Above all this was debates about pricing, as consumers always picked the cheaper option between the two—an answer that was never all that consistent.
This check and balance between the two companies meant that they had to be in top form in order to succeed. As the two apps battled it out, the consumer ultimately won. The customer was the one who reaped the benefits of Uber and Grab’s skirmishes, able to pick and choose which service they felt was the best for them. Today, that is no longer the case, with Grab holding a monopoly on the service until another company can put up a challenge. It begs the question, will Grab continue to innovate and develop itself, or will holding a monopoly cause it to stagnate?
As of the moment, things are at a “wait-and-see” stage, where Uber bows out of the ride-sharing arena and Grab takes center stage. With the coming days, each booking, price surge, and cancellation will be placed under intense scrutiny. There will be much frustration, as any hiccup simply reminds users that for now, there simply is no alternative to Grab.
Grab could sink or swim in this new landscape, but ultimately riders and drivers alike pray for its success. For better or worse, apps like Grab are a necessity where horror stories of daily commutes go from bad drivers to life-threatening situations. That only begs the question of what the future of the commuting industry will look like now that Grab’s green tinted logo becomes the face of ride hailing apps in the Philippines.
The merger is full speed ahead as Uber officially moves its entire operations to Grab on April 09, Monday.