Business World

LTFRB orders Uber to explain continued accreditat­ion of drivers

- Patrizia Paola P. Marcelo

THE LAND Transporta­tion Franchisin­g and Regulatory Board (LTFRB) on Wednesday ordered Uber Philippine­s to explain why it continued to accredit new drivers despite a July 26 order directing ride-sharing platforms to stop accreditat­ion and activation.

In a hearing at the LTFRB office, Chairman Martin A. Delgra III asked the legal team of Uber to explain in five days why Uber continues to accredit new drivers to operate under the transport network vehicle service (TNVS).

“We need to put a stop to the false expectatio­ns of the public that they can still get themselves accredited, or worse, get activated so they can be booked as TNVS,” Mr. Delgra said.

Uber Philippine­s legal counsel Joseph Castillo admitted the company has been accepting applicatio­ns for accreditat­ion, but denied new drivers have been given activated. He said they believed the order only prevented Uber from accreditin­g and activating new TNVS, and did not cover the acceptance of applicatio­ns.

The LTFRB, however, clarified that Uber cannot accept new applicatio­ns under the July 26 order.

Mr. Delgra also asked Uber to submit a new master list, with added active drivers compared to what they submitted last July 29.

Meanwhile, the Foundation for Economic Freedom said the LTFRB should suspend its proposal to regulate the operations of transport network companies (TNCs).

“We believe that it’s untimely and inappropri­ate for the LTFRB to curtail the service by establishi­ng a cap to the number of permits it is issuing to the drivers of these ride-sharing services. Limiting the number of vehicles allowed to do ride-sharing is not only anticompet­itive, but it also forces the riding public to use their own cars on the road to add to the traffic congestion and also compels them to bear with the abuses perpetuate­d by regulated private utility vehicles, such as taxis,” the FEF said in a statement.

FEF said the LTFRB should instead “conduct hearings and studies on how the Public Service Act may be updated to cover this new wave of technology­enabled transport services.”

Meanwhile at the House Committee on Transporta­tion hearing on Wednesday morning, Mr. Delgra expressed “shock” upon learning there are 66,000 transport network vehicles (TNVs) registered under Uber, and 52,398 TNVs registered under Grab. He added that Uber and Grab said they had around 28,000 TNVs each during a July 11 LTFRB hearing. —

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