Poe to LTFRB: Explain cap on Grab, Uber, other transport units

Senator Grace Poe is urging the Land Transportation Franchising and Regulatory Board (LTFRB) to “explain the science” behind its decision to limit the number of Grab, Uber and other ride-sharing units to 45,000 in Metro Manila, 500 in Metro Cebu and 200 in Pampanga.

“What’s the math used in this decision? What were the parameters used, like demand and supply?” Poe asked in a statement on Monday.

The senator said “some formula would have been used because these figures, which are important to the riding public, cannot and should not be plucked out of thin air.”

“In this age of algorithms, LTFRB should make public the factual basis of its decision. Ilabas nila ang minutes ng meetings and consultations para alam ng publiko (They should release the minutes of the meetings and consultation so the public will know),” she said.

“Such disclosure of a public document is what the FOI (freedom of information) rules, issued by the President, require. Tulad namin dito sa Senado (Like us here in the Senate), ang (the) transcripts are made public. Walang (Nothing) censored or hidden,” she pointed out.

While clarifying that she was not questioning LTFRB’s order, Poe insisted that the agency should “explain the scientific basis of their decision.”

The senator also questioned if LTFRB conducted surveys among transport network vehicle service (TNVS) customers, whom she described as the “most important components in the ride-sharing business.”

The LTFRB recently issued Memorandum Circular 2018-003 which sets a “common supply base” for TNVS providers. The said base would mean that ride-sharing companies would share the pool, without exceeding it.

The LTFRB earlier assured the public that the base would be reviewed every quarter and adjusted correspondingly based on “churning rate” or the number of vehicles that are no longer in the system.

Poe, however, pointed out that the review “should not just be based on the churning rate, but on an “algorithm that determines supply and demand.”

“The cap will also affect not just the TNCs but the livelihood of drivers of TNVS. Given that there are currently about 100k TNVS combined, and this number is not enough to satisfy the demand of the public, then we should start with that as the base and adjust accordingly,” she added in the statement.