AUTO INDUSTRY NEWS

DOTC to taxi operators: Shape up or shut up!

DOTC to taxi operators: Shape up or shut up! image

Text: Eric Tipan / Photos: | posted November 20, 2014 07:26

Ordered to update their fleet to keep up with competition like Uber

The Department of Transportation and Communications (DOTC) has once again thrown its support behind modern and innovative solutions to transportation services by lending its weight to Uber’s system and telling taxi operators to simply renovate their units and improve their overall service instead of complaining about competition from ride-sharing services.

“People prefer to use these tech-based transport services because they are more convenient. It’s that simple. So my advice to taxi operators: Modernize, innovate and improve your systems and services.  Commuters say they feel safer taking these private vehicles-for-hire, that the fleet are newer, that app services are faster and more efficient. So why put a stop to what is clearly for their benefit? Poorer services should be upgraded to match their competition—not the other way around,” said Transportation Secretary Joseph Abaya.

DOTC’s support comes at the right time for Uber as the Land Transportation Franchising and Regulatory Board (LTFRB) is getting set to hold a hearing four days from now to determine how they can update their rules to handle ride-sharing services like Uber.

As reported a week ago, the LTFRB has considered categorizing Uber units as ‘vehicles-for-hire’ in order to legitimize the service they offer.