AUTO INDUSTRY NEWS

LTFRB to GrabBike: Cease and desist

LTFRB to GrabBike: Cease and desist image

Text: Eric Tipan / Photos: GrabPh | posted February 09, 2016 08:21

LTFRB has no guidelines on motorcycles as PUVs

If the daily vehicular traffic is making think about ‘Grab-bing’ a bike to work, well you’ll be better off getting its four-wheeled counterpart, for now.

The Land Transportation Franchising and Regulatory Board has ordered GrabBike, Inc. to terminate operations and refrain from offering motorcycle rides to customers.

In addition, GrabBike must also submit a written report to the LTFRB confirming their compliance within 24 hours after receipt of the order.

Grab, which recently rebranded in order to properly represent the services they offer, has admitted through Vice-President Nina Teng that GrabBike operates without the necessary paperwork from the LTFRB that authorizes them to offer rides to the public.

The company has expressed that they will immediately stop as soon as they receive orders from the Board.

“We hope GrabBike will make good its promise to accede to the cease and desist order issued by the Board. Also, we appeal to those independent motorcycle owners who also offer their vehicles for hire to stop even if they are not affiliated with GrabBike. Otherwise they will be apprehended and penalized,” said LTFRB board member Atty. Ariel Inton.

The LTFRB insists that they will not authorize the use of motorcycles as public utility vehicles until a set of guidelines can be drawn up in order to protect passengers and other motorists as well.

GrabBike, for its part, has announced last week via its social media sites that they will be ‘temporarily’ halting operations albeit maintained that they consider the app-based motorcycle service as a solution to the current transportation problem.

“We stand firmly on our belief that we have created an innovative solution to the country’s transportation problem and we are working towards finding a way to continue providing it to the community. We’ve done this before with the support of our loyal Grabbers and we hope to be able to do it again with GrabBike,” Grab said.