Uber, GrabCar vow to comply; LTFRB explains Premium Taxi

As the deadline nears for app-based transportation services to be accredited by the Land Transportation Franchising and Regulatory Board (LTFRB), two companies have given assurances that they will comply with regulations governing their newly created category of franchised vehicles.

In a statement to the Inquirer on Friday, Uber spokesperson for the South Asia region Karun Arya said “we are working closely with the [Department of Transportation and Communications (DOTC)] and LTFRB and are confident of completing the relevant formalities for accreditation in the time stipulated.”

“Uber is deeply committed to serving the local community and providing millions of Filipino commuters with access to safe, reliable and affordable transport options, creating thousands of jobs and bringing efficiency to Manila’s transportation system,” Arya said.

On Monday, LTFRB Executive Director Roberto Cabrera announced that starting Aug. 20 the board would start apprehending unregistered or “colorum” transportation network companies (TNCs) and transportation network vehicles (TNVs), the name given to companies like Uber and their partner vehicles.

The DOTC created the TNV classification in May while the LTFRB issued four memorandum circulars laying down the regulations for TNVs and TNCs.

The TNCs are required to apply for accreditation with the LTFRB, while drivers of TNVs are required to be accredited by the TNCs and also apply for a one-year franchise.

As of Friday, GrabCar was still the only TNC that had secured accreditation.

GrabCar head Natasha Bautista said it was a matter of pride for her company to be the first to comply. “This is a testament to our commitment to the government’s efforts in recognizing the need for Filipinos to be able to travel safely and effortlessly and to provide our drivers with the assurance that they are operating legally,” Bautista said in a statement sent to the Inquirer.

But Bautista admitted that since the process was “new to everyone,” operational details still had to be ironed out relating to individual TNV applications. “We continue to work closely with the LTFRB and hope to have more accredited vehicles using our app and serving the public soon.”

Last year, Bautista explained that while Uber partners with private drivers, GrabCar partners with the franchised rent-a-car service Click. She disclosed on Thursday that GrabCar is now also engaged in “peer-to-peer” partnerships with private drivers and vehicles.

Earlier this week, LTFRB Chair Winston Ginez pointed out while GrabCar was already accredited by the LTFRB, its partner vehicles had yet to apply for franchises.

Based on LTFRB estimates, Uber and GrabCar have a combined fleet of partner vehicles totaling 8,000 to 10,000 units in Metro Manila.

Replying to critics who thought the LTFRB was cracking down on colorum TNVs too soon, Ginez said in a recent Facebook post: “Why will we allow unregistered private vehicles to engage in public land transportation service offering no security and protection to our unsuspecting commuting countrymen?”

“Being a government regulator, I’ve been at the receiving end of public criticism, social media bashing and even lawmakers calling for my resignation. Despite this, we in [the DOTC] and the LTFRB will continue to implement the law without fear or favor. Unpopular maybe, but we have to say no when our laws and regulations are being disregarded right before our eyes,” Ginez added.

Cabrera admitted that the board was still planning new ways to apprehend a colorum TNV. The last time it carried out such an operation was in October last year when an undercover agent posed as an Uber client.

The incident brought Uber into focus as a fast-rising player in the local transport sector, until a series of public hearings—and protests from regular taxi operators—led to the creation of the new classifications.

The credit cards used in that first-ever sting on an Uber car on Philippine roads “had since been blocked” by the company, Cabrera said.

Eliminating ‘competition’?

Meanwhile, the LTFRB found itself battling another social media war this week, when the board was accused of gearing up for the crackdown purportedly to eliminate “competition” for the benefit of another newly created, app-based vehicle category called Premium Taxis.

“The allegation that Premium Taxi was created to compete with Uber and GrabCar is without basis,” Ginez said.

The new classification, he said, was created by virtue of the same May 8 DOTC order creating the TNVs, the bus rapid transport service and the airport buses.

But unlike TNVs that operate on a per-booking basis with their respective TNCs, the high-end Premium Taxis will be allowed to do on-street pickups and sport yellow plates, he explained.

Only sedans with engine displacement of 2.0 or higher can qualify under this category. To qualify for a franchise, the operator must also have a minimum fleet of 25 units.

“The introduction of Premium Taxis won’t kill Uber or GrabCar,” Ginez maintained. “By design, its introduction intends to pose a challenge to current taxi operators for them to upgrade and improve their traditional taxi operation. While we open franchising (for) Uber, GrabCar, and the like, we are giving taxi operators the same opportunity them to have new franchises albeit with high quality taxi units and improved operation.”