Senator Pushes for Regulation of TNCs

In light of the recent discussions about the Transport Network Companies (TNCs), Senator Grace Poe is currently pushing for the regulation of the ride-hailing mobile apps.

On July 19, 2017, Poe, who is the chairperson on the Senate Committee of Public Services, filed Senate Bill (SB) 1501--to be known as the Transportation Network Services Act--which will institutionalize and regulate ride-hailing  services.

The same day, Poe, along with vice chair Senator JV Ejercito, had a closed-door meeting with the officials of the Land Transportation Franchising and Regulatory Board (LTFRB) as well as representatives of the TNCs such as Grab and Uber to tackle the issue.

The senator said that during the meeting, parties were able to agree that:

• They will continue with the TWGs next week, in order to find a win-win solution for both government and the TNCs;
• Grab and Uber will share their data with the LTFRB so that the LTFRB, in crafting guidelines, will consider the actual number of TNVS on the road and not just the number of TNVS that have been accredited; and
• Although the LTFRB will push through with executing its memorandum circular, it will allow the TNCs to file their motion for reconsideration and, pending the resolution of the latter, will allow existing colorum TNVS to continue providing service.

"Let us allow the LTFRB to do its job. They have to regulate common carriers to ensure accountability and to prevent the 'dynamic pricing scheme' of TNVS from overcharging passengers during peak hours," Poe said.

"On the other hand, (the) government must be forward-looking. Ride-hailing services is now a necessity because these provide the comfort and reliability that many of our people look for in public transportation," she added.

Once approved into law, SB 1501 shall prohibit a person, organization, or entity to operate a transportation network company without first obtaining a Permit from the Board upon compliance with the requirements set forth by the Act and other reasonable conditions as may be provided by the Board.

Before getting a permit to operate, TNCs must submit the following requirements:

• Application form, which shall include the applicant's name, address, tax identification number (TIN), and other necessary information;
• If the applicant is a foreign corporation, proof that they are licensed to do business in the Philippines;
• Resident agent for purposes of service of process; and
• Payment of an application fee;

Aside from that, the permit shall be valid for two years unless, revoked by the Board.

Further, TNCs SB 1501 shall be required to do the following:

• Create an application process for persons to apply for registration as Transportation Network Drivers;
• Maintain an updated database of the TNC’s drivers; and
• Maintain a website containing their contact information, and their procedures for complaints against TNDs.

Moreover, TNCs shall comply with the Zero Tolerance for drug or alcohol use, and observe vehicle safety policy.

Furthermore, the bill, when approved into law, shall require TNCS to disclose the fare calculation method and the applicable rates to be charged and transmit an electronic receipt to the passenger's electronic mail address or mobile application.

On the other hand, SB 1501 shall empower the LTFRB by being given the jurisdiction to the issuance of permits to regulate TNCs and has the power to revoke, suspend, or deny the application for a permit of a TNC.

Aside from that, the Board may impose penalties on a person, firm, corporation, or entity under the TNCs.

Poe expressed firm belief that "prudent regulation is necessary for (the) government to ensure the highest degree of service for the general public."

"In particular, all modes of transportation, whether traditional or innovative, must be regulated to ensure the safety and comfort of passengers, to hold erring or abusive operators and drivers accountable, and to ensure that an adequate number of public transportation units are available in all areas," she explained.

However, she clarified that regulation should not stifle innovation, "especially when the same can alleviate the woes of our general public who struggle with traffic congestion every day."

"Thus, although there is a need for regulation, TNVS is a necessity because our country's public transportation systems continue to remain unreliable," Poe concluded.

Last Tuesday, July 18, the Board made a firm stand that the TNCs must comply with the rules just like any other type of public utility vehicles.

For their part, Grab Philippines country head Brian Cu announced that they will file a motion for reconsideration on the Board order that orders the TNCs to deactivate all TNVS partners without Provisional Authority (PA) or Certificate of Public Convenience (CPC) documents.

"We thank the LTFRB for convening us this morning to discuss the July 11 order. Grab is filing a motion for reconsideration tomorrow which will start the process for further discussion on resolving the issues on colorum drivers," he said.

 

Story by Ruben Manahan IV