LTFRB clarifies Grab, Uber services not suspended

By TED CORDERO, GMA News, Jul 18, 2017

The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday clarified that Grab Philippines and Uber were not suspended despite an ongoing online campaign by drivers to lift the suspension order against transport network companies (TNCs).

“Ride-hailing services have not been suspended,” the LTFRB said in a statement.

“However, only those with provisional authority (PA) or certificate of public convenience (CPC) may be allowed to operate,” it added.

The board issued the statement in light of the online campaign to lift the suspension order which, if granted, would effectively give new TNCs drivers the permission to go ahead.

Hosted by online platform change.org, the campaign is led by TNC driver Bobby Colonel. The appeal is for the government to lift the suspension and allow additional TNC drivers to operate and meet the growing demand for the service.

“If TNCs want to engage in the business of public transportation, they need to follow the rules just like any other type of public utility vehicle (PUV),” the LTFRB said.

During the accreditation hearing on July 11, the LTFRB slapped Uber and Grab a P5 million fine for violating the contract with the government and ordered the companies to deactivate than 50,000 so-called colorum Transport Network Vehicle Service (TNVS) drivers – or those without a franchise or provisional authority.

Colorum is slang for illegal public transport vehicle.

“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,” LTFRB Chairman Martin Delgra III said.

The P5-million fine is on top of the ongoing moratorium imposed on accepting new applications.

Apart from operating without franchises, some drivers were also found trading franchises among them, the LTFRB said.

TNCs also failed to comply with other requirements such as IDs for drivers and company signage on the vehicles. There have also been numerous complaints of rude and abusive TNVS drivers, according to the board.

“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,” Delgra said.

“Where service is imbued with public interest and no less than the safety and welfare of the riding public is concerned, regulations become priority,” he added.

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.

“They have to show good faith first. Right now, they are not cooperating,” the LTFRB chair said.

“The board has welcomed the creation of a TWG to help address the demand of such mode of public transport in a rational, comprehensive and systematic manner. We expect the TNCs to be candid, accurate, complete and transparent in submitting all the data and information the board will need in addressing the issues,” he added.

More than 20 TNVs have so far been apprehended for operating without a franchise. — VDS, GMA News