LTFRB to order deactivation of 50,000 Uber/Grab vehicles

Jul 19, 2017 | Same topic: Latest traffic updates
The LTFRB orders TNCs like Uber and Grab to get rid of colorum drivers.
What has been on the news is that the Land Transportation Franchising and Regulatory Board (LTFRB) will not let up in its battle to regulate Transportation Network Companies (TNCs) like Uber and Grab. Therefore, if these firms want to engage in the business of public transportation, they need to follow the laws and regulations like any other public utility vehicle (PUV).

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two smartphones running Uber and Grab app

The Land Transportation Franchising and Regulatory Board (LTFRB) will not let up in its battle to regulate Transportation Network Companies (TNCs) like Uber and Grab
 
The LTFRB also stood firm in its decision to eliminate colorum vehicles operating in Uber and Grab.
 
LTFRB Chairman, Martin B. Delgra III as quoted as saying: “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 that they have broken those rules grossly, putting at risk the tens of thousands of transport network vehicle services (TNVS) without PA or franchise to commit colorum activities.”

>>> Taxi drivers’ group stormed LTFRB to protest Grab, Uber and other TNC operations in the Philippines. Read our article for more information.
 
Uber app opened on a smartphone

If Uber and Grab want to engage in the business of public transportation, they need to follow the laws and regulations like any other public utility vehicle (PUV)
 
The agency clarified that it is not suspending the two ride-hailing services as a whole. However, only vehicles with Certificate of Public Convenience (CPC) and Provisional Authority (PA) will be allowed to continue operating.
 
In the accreditation hearing held last week, Uber and Grab were penalized by the LTFRB with Php 5 million each for various violations. The LTFRB also ordered them to stop the operation of 50,000 colorum TNVS drivers. Apart from operating without franchises, many TNVS drivers are also accused of trading franchises among themselves. There have also been several complaints on impolite and abusive TNVS drivers.
 
A pink car side with grab taxi sticker

Only vehicles with Certificate of Public Convenience (CPC) and Provisional Authority (PA) will be allowed to continue operating
 
Delgra further explained: “We cannot have one rule regarding colorum for them and another rule for the rest of the modes of public transport, i.e. bus, UV express, taxi and PUJ. Where service is imbued with public interest, no less than the safety and welfare of the riding public is concerned, regulations become priority.”

The LTFRB also stated that TNCs have to show good faith by complying first while the agency sets up a Technical Working Group (TWG) to look into basic problems including:
 
  • Accreditation
  • Pending applications
  • The core issues of accountability and dynamic pricing scheme 
 

LTFRB tells Grab, Uber: 'We will not succumb to pressure'
 

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