DOTr gives LTFRB full powers over ride-sharing companies

The Department of Transportation (DOTr) has issued a new order giving the Land Transportation Franchising and Regulatory Board (LTFRB) full authority over mobile ride-sharing companies, an official said yesterday.

Under the department order, the LTFRB can regulate and supervise transport network companies (TNCs) like Grab on all aspects, including fares, routes and other operating conditions.

The DOTr said this “corrects” the Department Order 2015-11 issued by the last administration as it brings back the regulatory authority to the LTFRB.

LTFRB board member Aileen Lizada said the transport network vehicle service (TNVS) fare rates shall now be determined by the board after public hearings or in consultation with the TNCs.

The issue on fare setting was recently contested as a lawmaker accused Grab of illegally charging its passengers P2 per minute per trip and accumulating more than P1.8 billion from the charge.

Lizada said the new order gives LTFRB the authority to impose fines as well as approve, deny, suspend and cancel franchises.

Last year, Uber paid a P190-million fine to end its one-month suspension for accrediting a vehicle and a driver while there was a moratorium for applications.

Grab and Uber also paid a P5million fine each for several violations in July 2017.

Transport Secretary Arthur Tugade said they recognize the roles of TNCs and their respective TNVS in providing a vital service that is safe, reliable and efficient.

LTFRB chairman Martin Delgra said they are ready to engage TNCs and TNVS and the processing of franchise applications has started.

Grab said in a statement that it welcomes the new order, which “highlights the continuing progress and improvement of the legal framework” that govern TNCs and their TNVS.

Other accredited TNCs are Hype Transport Systems, Inc.m Hirna Mobility Solutions Inc., GoLag Inc., Micab Systems Corp. and Ipara Technologies and Solution, which runs Owto.