Stricter rules for ride-sharing firms eyed

The government is set to impose stricter regulations on transport network companies (TNCs) by the end of the month, an official said yesterday.

The Land Transportation Franchising and Regulatory Board (LTFRB) would issue memorandum circulars on TNCs before the end of September, which is seen to end the months-long issues hounding Uber and Grab.

LTFRB spokesperson Aileen Lizada said the body would impose graduated penalties for the TNCs, which would include monetary fines aside from suspension and cancellation of their accreditation under the new circulars.

This comes after Uber paid a hefty P190 million for the LTFRB to lift the remaining 19 days of its one-month suspension.

The range of penalties has yet to be determined, Lizada said.

The TNCs would also have to comply with transport industry standards on insurance set by the LTFRB, after it was found that Uber and Grab did not provide enough insurance for its passengers.

Among the new policies to be issued by the LTFRB is a “common pool” for drivers and operators, so that franchises issued to transport network vehicle services would be generic. Drivers can now be “dual citizens” and be on board the platforms of different TNCs simultaneously.

“We will now have a common pool. We will develop this base for all TNCs and it would be reviewed every three months,” Lizada said in a phone interview.

The LTFRB has yet to declare the exact number of vehicles needed for the common pool that it will set up.

“Fleets” or operators with more than four cars under the franchise would no longer be allowed by the LTFRB as Lizada said this would contradict the “ride-sharing” aspect of the TNCs.

While fleets would be removed, the LTFRB will also compensate by extending TNVS franchises to three years from the current one year.

The regulatory board is also expected to issue stickers, to be used as trade dress by TNVS.

Lizada assured that the new measures will be for fair competition and public interest, while the law has yet to be crafted by Congress.

She also cleared that both Grab and Uber are not yet off the hook as their renewal for accreditation, which already expired, is still up for review.

“It is still under review. We have to have a document that they are willing to commit to follow the rules,” the LTFRB official said.