Appeal stays apprehension of ‘colorum’ Uber, Grab cars

Uber and Grab vehicles deemed colorum will be spared from apprehension once these transport network vehicle services (TNVS) file their respective appeals against the Land Transportation Franchising and Regulatory

Board’s (LTFRB) crackdown on cars without permits.

LTFRB member and spokesman Aileen Lizada said the filing of their motions for reconsideration (MRs) technically suspends the LTFRB crackdown, which is scheduled to start on July 26.

“The filing of the MR technically holds in abeyance whatever decision, because it is not yet final. The pleading should be settled first,” Lizada told reporters. Thus, no colorum TNVS operator under the two app-based ride-hailing service giants shall be apprehended and penalized in the meantime.

Under due process, transport networking companies (TNCs) Grab Philippines and Uber Systems, Inc. were given 15 days to file their MRs after the LTFRB ordered them last July 11 to cease the deployment of all TNVS that do not have their certificates of public convenience (CPCs) and provisional authority (PAs).

This was on top of the 15-million penalty after the TNCs admitted activating almost 56,000 cars on their system and allowed them to charge passengers, despite a July 21, 2016 moratorium on the application and release of new TNVS franchises. At that time, only about 3,700 were granted permits to operate.

Lawyer John Paul Nabua, the first to file a 14-page MR for Grab on Thursday, argued that the moratorium only indicated the review of the terms and conditions for the TNVS and did not ban them from accrediting new drivers.

“Basing on it, the memorandum did not totally disallow TNVS or did not say that we have reached our limit... It suspended the application but did not ban accreditation,” he said.

Nabua also blamed the huge number of colorum TNVS on LTFRB “inaction” while the moratorium was in effect.

“On our part, we continue accrediting because we were expecting that the suspension will be lifted anytime. We were told that once we have submitted our position papers, they will review the rules and regulations. But seven months have passed and there are still no actions,” he said.

The Grab counsel explained they also accredited new drivers because “it will be unfair to them should they hold their accreditation when they have fully paid the application fees.” Grab charges its operators and drivers each a 16,000 processing fee to be put into their system.

Nabua said they expect to come up with a win-win solution as they coordinate with the LTFRB on the matter. If the talks were unsuccessful, Nabua warned that fares in TNVS will increase. “If they reduced the 28,000 of Grab cars on the road – we know we have what we call dynamic pricing, that if cars were fewer than the passengers – prices will increase,” he said.

Uber legal counsel Roberto Ramiro, on the other hand, refused to give statements to the media. But Uber, in a statement sent to reporters, said: “The motion for reconsideration is an appeal to the LTFRB to suspend the implementation of the July 11 order. We hope the LTFRB respond favorably.”

Meanwhile, both Uber and Grab have already paid the 15-million fine last July 18, and July 20, respectively.