Uber, Grab Drivers Without Franchise Cannot Operate Starting July 27

Starting July 27, Uber and Grab drivers without franchise risk getting their cars impounded and paying a fine of Php 120,000 when caught.

Ridesharing companies find themselves once again in a conflict with the Land Transportation Franchising Regulatory Board (LTFRB) after officials ordered Grab and Uber to submit a list of accredited operators and stop the operations of drivers without franchises.

Drivers and operators are now required to have a Certificate of Convenience and Provisional Authorities. Currently, out of the 56,000 drivers accredited by Uber and Grab, only about 3,700 have a permit to operate from LTFRB.

Also read: Business Talk with Grab’s Marketing Head Khriz Lim

Grab and Uber previously paid a fine of Php 5 million for failing to screen drivers and accrediting them without franchises, and several other violations.

Drivers recently started a petition, asking riders to sign online or in person (during a ride) as support for the ride-sharing industry.

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Sources: CNN Philippines, Inquirer.net