LTFRB orders deactivation of 50,000 Uber, Grab cars

The public should expect a shortage of transport next week as the crackdown on more than 50,000 illegal and unauthorized Uber and Grab cars is enforced on July 26, transport officials said yesterday.

Land Transportation Franchising and Regulatory Board (LTFRB) officials led by chairman Martin Delgra III stood firm in their decision to go after colorum Uber and Grab vehicles for violating franchise rules and regulations governing public utility vehicles.

“We cannot have one rule regarding colorum for them and another rule for the rest of the modes of public transportation,” Delgra told a news conference.

On Tuesday last week, the LTFRB ordered Uber and Grab, as transport network services (TNVs), to rid their ranks of colorum drivers, pay a fine of P5 million each and submit an updated list of their accredited peer operators as of June 30.

None of the demands have been met, according to the officials.

“They have to show good faith first. Right now, they are not cooperating,” Delgra said.

If the problems are not sorted out before the order becomes executory on July 26, there will be fewer TNVs on the road next Wednesday.

Delgra said there are only around 3,000 accredited Uber and Grab cars, meaning these vehicles have obtained certificates of public conveyance to operate.

There is an ongoing petition to lift the suspension order but the LTFRB stood firm in its decision to crack down on unauthorized TNVs.

The Department of Transportation asked Grab and Uber to follow the process in securing franchise and to pay the necessary fees, saying they should not be treated differently from public utility vehicles.

Transportation Secretary Arthur Tugade said his agency is not against shared ridership and technology but maintained that TNVs should comply with regulations intended to promote public interest.

“What the LTFRB was saying was ‘Will you please register?’ What makes you so different from the other public utility vehicles? Just because you are a TNC (transport network company), you will no longer register? That’s not right,” Tugade said in a press briefing in Malacañang.

“They should get approval from LTFRB. Their job is clothed with public interest. And because it is clothed with public interest, the regulatory functions of certain agencies and government must come to fore,” he added.

Tugade said the LTFRB regulations seek to ensure the road worthiness of vehicles and to determine whether drivers are qualified for the job. He said the regulations also allow the government to determine whether the vehicles seeking franchise are covered by insurance.

Out of the 56,000 TNVs operating in the country, less than 10 percent are registered, Tugade pointed out.

“What we are saying is follow the process. After that, pay the taxes,” he added.

Sorting out

Meanwhile, the applications of around 10,000 of 32,000 units submitted before the issuance of new provisional authorities was suspended on July 21, 2016 are pending before the LTFRB.

This means a majority have been dismissed for non-compliance of requirements.

The problem is that Uber and Grab accepted applications even after July 21, Delgra said.

Delgra added owners of 2,240 units whose applications were dismissed have filed motions for reconsideration before the LTFRB. These cars can still operate provided they have obtained provisional authorities.

This means only around 15,240 TNVs will be operational by July 26.

“That is possible assuming the documents of the 10,000 units are complete,” LTFRB board member and spokesperson Aileen Lizada said.

A surprise inspection on Monday conducted by Lizada at the office of Uber in Mandaluyong City revealed the TNC is still accepting applicants despite their order. The situation is different at the office of Grab where there has been no activity.

To address the impending shortage, LTFRB officials hope representatives from Uber and Grab would talk to them to create a technical working group that would discuss and sort out the issues.

Sen. Joseph Victor Ejercito said he would meet with officials and representatives of LTFRB and TNCs within the week to come up with a compromise regarding the planned crackdown on colorum operations starting July 26.

“I will call for a meeting to mediate and come up with a compromise for both parties before July 26. I am not siding with anyone on this issue. What’s important to consider here is the convenience and safety of the riding public. We would consider all remedies without disregarding the law,” Ejercito said.

He said the LTFRB should take into consideration in its decisions the rea- sons these TNCs are thriving and that is because commuters feel they are getting better and more convenient service compared to regular taxis.

“Now that there are better services available to the public, the LTFRB wants to stop their operations,” Ejercito said.

“If you are this loud and bent on imposing a service ban on Grab and Uber, you should also have the same reaction to the complaints about regular taxis,” he added, referring to LTFRB.

Uber, for its part, paid the P5-million fine for its operation of colorum vehicles.

Lizada yesterday confirmed Uber paid up and showed a receipt confirming the payment.

Spokesperson Catherine Avelino said Uber is fully committed to working with the LTFRB.

“We look forward to the LTFRB’s technical working group so we can all work together to draft regulations that embrace technology to keep the Philippines moving forward,” Avelino said.

However, she insisted that suspending vehicles with franchise applications is counterproductive as those to be affected are millions of commuters using their services.

Consumer support

Commuters have been expressing support for Uber and Grab through social media.

An online petition over change.org supporting the lifting of the TNVs’ suspension has garnered 100,000 supporters as of yesterday.

Despite the growing support for the two TNCs, Delgra said they remain firm in their decision, stressing what they are implementing are regulations imposed on other public transportation services.

“The TNCs agreed to fully comply with the rules at the time they were granted accreditation. With their open and candid admission, it is clear they have broken those rules grossly, putting at risk the tens of thousands of TNVs without provisional authority or franchise to commit colorum activities,” he said.

“Where service is imbued with public interest, no less than the safety and welfare of the riding public is concerned, regulations become priority,” he added.

Delgra told Uber and Grab not to make it appear they are the victims in the controversy.

“I’m appealing to you, don’t turn the commuters against us because it’s the mess you have created on yourselves,” he said. –