Grab, Uber future uncertain: LTFRB sets accreditation hearing

By Rex Remitio, CNN Philippines, Jul 9, 2017

Metro Manila (CNN Philippines, July 7) — The future of tens of thousands of Grab and Uber drivers in the Philippines is in limbo as transport authorities have yet to determine if they will renew the accreditations of the two Transportation Network Companies (TNC).

Grab’s accreditation expired on July 3, while Uber’s accreditation will expire in August this year.

Land Transportation Franchising and Regulatory Board (LTFRB) Memorandum Circular 2015-015 states that a TNC must obtain LTFRB accreditation, valid for two years, before being allowed to operate.

LTFRB Spokesperson Aileen Lizada said Grab has formally requested for renewal of its accreditation, although the regulatory board has yet to act on it.

However, Grab Government Communications Manager Fiona Nicolas said it was business as usual for the company.

“Sinabi ni (LTFRB Chairman Martin Delgra III) na wala naman pong order ang LTFRB para huminto tayo sa operations natin, so magtrabaho lang po tayo ng tama at sumunod sa batas trapiko,” Nicolas said.

[Translation: LTFRB Chairman Martin Delgra III said LTFRB has not ordered us to halt our operations so we will continue to do our work, and follow traffic rules.]

The LTFRB is set to hold a hearing on July 11 to discuss the TNCs’ accreditations.

No ‘PA,’ no passengers

Transport authorities said Grab drivers who don’t have a 45-day provisional authority (PA), a renewable document that allows drivers to accept fares until they are issued a franchise, will have to pay a fine of up to ₱120,000 if caught.

Nicolas told CNN Philippines on July 8 that the company always reminds drivers of the risks when drivng without a PA.

“It’s a matter of personal choice for the drivers,” she said. “They are family men. They have mouths to feed, monthly amortizations to pay. It’s a matter of livelihood for them, not just a piece of paper.”

She added that it isn’t illegal for Grab passengers to ride in cars without PAs.

The transport regulatory board stopped accepting applications for new franchises in July 2016 because of concerns over safety and accountability of the ride-hailing applications.