Uber told: Explain stance on transport franchise rule

The Land Transportation Franchising and Regulatory Board ( LTFRB) wants Uber and other online cab dispatchers to explain in writing why the franchise rule should not cover the company.

During a hearing yesterday, the board instructed the online cab providers, also including Grab Taxi, Easy Taxi, Tripda, and Tripid, to classify themselves whether their services fall under private carrier or common carrier.

LTFRB chair Winston Ginez said the Public Service Act mandates that those engaged in public transport should secure a franchise from the government.

But a lawyer for Uber, Donemark Calimon, argued that what the company engages in is that of private contracts of carriage, which means it is a special contract between the passenger and the conveyor.

Ginez said the Civil Code has a provision on private and common carriers, but he said online cab dispatchers should be able to prove that they fall under the former category.

The issue on online cab dispatchers was highlighted after the board apprehended an affiliate driver of Uber for colorum operations.

Following this, Transportation and Communications Secretary Joseph Emilio Abaya told the LTFRB to work together with Uber.

Abaya said transportation regulations should facilitate convenient, safe and reliable services to the public, not hamper them.