Compromise reached by Uber, Grab, LTFRB

A compromise was reached yesterday between Transport Network Companies (TNCs) Grab, Uber and the Land Transportation Franchising and Regulatory Board (LTFRB) which allowed both TNCs to appeal their alleged colorum violations.

IMAGE Senate.gov.ph

In a report from ABS-CBN News, Sen. JV Ejercito, the vice chair of the Senate Committee on Public Services, said representatives from the LTFRB and both TNCs met in a closed door meeting last Wednesday, July 19, and reached a compromise.

IMAGE Sen. Grace Poe’s official Twitter account

“After a brief meeting, the LTFRB said they will just wait for Grab and Uber to file a Motion for Reconsideration, which in effect would legally suspend and extend the execution of LTFRB’s July 11 order,” Ejercito said in a statement.

Senate Committee on Public Services chairperson Sen. Grace Poe said the LTFRB and the TNCs agreed to three things:

1. Continue with the Technical Working Groups to “find a win-win solution for both the government and TNCs;
2. Both Grab and Uber will share their data with the LTFRB so they can consider the actual number of Transport Network Vehicle Services (TNVS) on the road in crafting guidelines and not just the accredited TNVS;
3. Allow both TNCs to file a Motion for Reconsideration pending the resolution of LTFRB Memorandum Circular No. 2016-00, which suspended the acceptance of TNVS applications

In a statement, Poe asked the public to allow the LTFRB to do its job. “They have to regulate common carriers to ensure accountability and to prevent the ‘dynamic pricing scheme’ of TNVS from overcharging passengers during peak hours.’

Also read: Grab/Uber or Taxis: Which do you prefer?

She also said the government has to be more forward-looking. “Ride-hailing services are now a necessity because these provide the comfort and reliability that many of our people look for in public transportation.”

Poe filed Senate Bill (SB) No. 1501 or Transportation Network Services Act on the same day. SB 1501 will institutionalize and regulate ride-hailing services. Both the LTFRB and TNCs have agreed to participate in future hearings when called.

On the other hand, rookie Sen. Joel Villanueva filed a resolution calling for a Senate inquiry regarding the process followed by the LTFRB in granting franchises to TNVS. He cited the board’s decision that would have caused most of the TNVS to be apprehended because they were not granted provisional authority or issued a Certificate of Public Convenience (CPC).

“We would like to know the reasons why the LTFRB has suddenly stopped granting permits to TNVS. Aside from that, we are also interested at how the TNVS could present a way of utilizing underutilized resources which the government may see as a source of potential tax revenue,” he added.

The LTFRB, through its LTFRB Citizen Enforcer Facebook page, earlier issued an advisory that will establish a one-stop shop for TNVS to process expiring CPCs, extend CPC validity from one to two years, and establish a help desk for TNVS.

---

Sources: ABS-CBN News, Philippine News Agency, SunStar Manila, Inquirer.net
Image source: Grace Poe Official Twitter Account, Senate photo release