AUTO INDUSTRY NEWS

LTFRB to stand firm versus Grab, Uber

LTFRB to stand firm versus Grab, Uber image

Marcus De Guzman / | July 18, 2017 08:54

Grab and Uber violated franchising, accreditation rules according to the LTFRB

The Land Transportation and Franchising Regulatory Board (LTFRB) is steadfast in their decision to weed out colorum vehicles that operate under Grab and Uber under the law. In a press statement, the LTFRB said that if Transportation Network Companies (TNCs) want to continue operating, they also must abide by the rules and regulations just like any other public utility vehicle (PUV).

For them, the two ride-hailing services tolerated colorum vehicles as they allowed such operators and drivers to operate despite not yet being granted accreditation.

“The TNCs agreed to fully comply with the rules at the time they were granted accreditation. With their open and candid admission, it is clear that they have broken those rules grossly, putting at risk the tens of thousands of TNVs without PA or franchise to commit colorum activities,” said LTFRB Chairman, Martin B. Delgra III.

However, the LTFRB clarified that operations of both Grab and Uber have not been suspended. Only those that carry Provisional Authority (PA) and Certificate of Public Convenience (CPC) may be allowed to operate only.

During last week's accreditation hearing, the LTFRB slapped a Php 5 million fine against Grab and Uber for its violations and ordered 50,000 colorum TNVS drivers to be deactivated. Apart from this matter, the LTFRB is also looking into the matter that some TNVS drivers are trading franchises among themselves and reports of abusive drivers.

“We cannot have one rule regarding colorum for them and another rule for the rest of the modes of public transport, i.e. bus, UV express, taxi and PUJ. Where service is imbued with public interest, no less than the safety and welfare of the riding public is concerned, regulations become priority, said Delgra.

Delgra added that TNCs have to show good faith by complying first while LTFRB creates a Technical Working Group (TWG) to discuss issues such as accreditation and pending applications, and the core issues of accountability and dynamic pricing scheme as a way to move things forward.