Grab, Uber slapped with P5-M fine over permit violations

MANILA-- The Land Transportation Franchising and Regulatory Board (LTFRB) imposed a fine of PHP5 million each on transport network companies (TNCs) Uber and Grab for violations of various terms and conditions.

The LTFRB, in a hearing conducted Tuesday, stated that the two firms violated the terms and conditions of their Certificates of Transportation Network Company (TNC) accreditation under Memorandum Circular 2015-016.

Representatives from Uber and Grab admitted that a number of their transport network vehicle services (TNVS) have operated without certificates of public convenience (CPC) or provisional authority (PA).

Among other violations that were found to have committed by said TNCs are the discrepancies in the names of drivers recorded on the LTFRB database and their application forms and failure to screen their driver applicants before endorsing them to the board.

It appears that TNCs are not without fault for TNVS to be operating illegally and eventually apprehended. We need to be mindful of our responsibilities not only as TNVS but also as TNCs because you as owners of this digital technology that brings the riders and driver together has the equal responsibility as of those who have secured franchises under the public transportation service," LTFRB Chairman Martin Delgra stated.

We note also the candidness of the parties concerned Uber and Grab in admitting the fact that they are privy to having the situation which brought about the colorum operation of TNVS in their system, he added.

The LTFRB however did not suspend the accreditation of existing TNVS of both ride sharing services thus ensuring that they can still conduct regular operations.

LTFRB board member and spokesperson Aileen Lizada explained that the decision aims to make a balance on ensuring the right of transportation of commuters and making these ride sharing services accountable to the rules set by the regulatory board.

We respect the right of the riding public to avail of TNCs like Uber and Grab. However we cannot let go of the violations. As the enforcing body of the government, we must put things into order, Lizada said in an interview with reporters.

The LTFRB is set to create a technical working group which may be consisted of representatives of the TNCs in order to form a coherent and comprehensive policy on TNVS nationwide.

We aim to set a ceiling on the total number of TNVS to be deployed to address the needs of the riding public and what is appropriate for the TNCs to sustain their operations especially during the peak times, according to Lizada.

Grab's accreditation expired on July 3, while that of Uber is set to expire by August 2017.

Source: Philippine News Agency