The Land Transportation Franchising and Regulatory Board (LTFRB) may set a minimum number of work hours for app-based drivers not only to meet public demand but to also ensure that the franchises it has issued to transport network vehicle services (TNVS) are fully utilized.
In their second technical working group meeting on Wednesday night with Grab and Uber representatives, LTFRB board member Aileen Lizada said they learned that most app-based drivers work part-time, with several going online just five hours a week.
Because of this, the two transport network companies (TNCs) continue to accredit more drivers to ensure that they will be able to meet the riding public’s demand.
To date, it is estimated that Grab and Uber have a combined total of around 42,000 accredited drivers.
According to Lizada, the LTFRB is “seriously considering” imposing a minimum number of work hours as a way to put a cap on the number of Grab and Uber drivers as well as to address the TNCs’ complaint of undersupply.
“We always say that the franchise given by the government is a privilege. While the TNVS may work only part-time, for us in the LTFRB, we consider that as public service. If we would grant you a franchise then you would work only for two hours, we might as well give it to others,” she told reporters in a press briefing on Thursday.
Currently, Uber classifies its drivers into three categories: casual or those who are online 10 hours a week; part-time or up to 39 hours weekly; and full-time, 40 hours or more a week.
Grab, on the other hand, classifies drivers as part-time if they are online for less than 40 hours a week, and full-time if over 40 hours.
Lizada, however, said they would not adopt the classifications set by the TNCs but just use these as a guide to “[determine] what is best to meet the demand.”
To help the agency decide the ideal number of TNVS on the road, it has ordered Grab and Uber to submit today (Friday) their notarized database of drivers as of June 30.
Next week, the two TNCs are required to submit a separate database of the drivers they accredited on July 1 up to the day they stopped doing so.
Once the LTFRB receives the information, Lizada said they would conduct a crosscheck.
Earlier, the transport board ordered both Grab and Uber to “deactivate” drivers who were added to their platforms after June 30.
Of the 42,000 drivers, only 3,700 have been authorized by the LTFRB to operate. It is fast-tracking the processing and release of 11,000 pending applications but Lizada noted that they would not issue franchises to drivers who cannot prove that they have garages for their vehicles.
The LTFRB’s next meeting with the TNCs is on Aug. 10.