LTFRB Orders TNCS: Follow the Rules

The Land Transportation Franchising and Regulatory Board (LTFRB) made a firm stand that the Transportation Network Companies (TNCs) must comply to the rules just like any other type of public utility vehicles (PUVs).

There is as an online petition to "lift the suspension" against TNCs such as Uber and Grab that is circulating on the internet. The board clarified that only those with Provisional Authority (PA) or Certificate of Public Convenience (CPC) may be allowed to operate and not the ride-hailing services.

LTFRB Chairman Martin Delgra III said that the companies need to follow the rules, and with the groups' admission, they have broken the rules.

"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," he said.

At the accreditation hearing last July 11, the LTFRB slapped a P5 million fine each for Uber and Grab for its violations and ordered them to deactivate the more than 50,000 colorum Transport Network Vehicle Service (TNVS) drivers.

The said fine is aside from the ongoing moratorium imposed on accepting new applications.

"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, no less than the safety and welfare of the riding public is concerned, regulations become priority," he added.

Further, the LTFRB chair said 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.

"They have to show good faith first. Right now, they are not cooperating," Delgra 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.

UBER eyes LTFRB TWG on TNCS

In statement, Uber claimed that suspending vehicles with pending franchise application will affect commuters and the TNV drivers and operators.

"We are fully committed to working with the LTFRB, but suspending vehicles with pending franchise applications will hurt millions of daily commuters who depend on transport network vehicle services to take them where they need to be, as well as everyday Filipinos and their families from making extra income," the group stated.

Uber also believes that it "is counter-intuitive to force fit regulations drafted for 100-percent public utility vehicles to technology companies and its partners."

On the other hand, the company said that it is looking forward to the TWG being made by the LTFRB.

“We are grateful for the outpouring of support we have received from our riders and partners, and we look forward to the LTFRB's Technical Working Group so we can all work together to draft regulations that embrace technology to keep the Philippines moving forward," Uber concluded.

Story by Ruben Manahan IV