SENATOR Grace Poe said that while the Land Transportation Franchising and Regulatory Board (LTFRB) will push through with executing their memorandum circular of impounding Uber and Grab cars without franchise, LTFRB will at the same time allow the Transport Network Companies (TNCs) to file their motion for reconsideration and pending the resolution of the latter, will allow existing "colorum" Transport Network Vehicle Services to continue providing service.
Poe, chair of the Senate committee on public services, said the public uproar caused by the issuance of LTFRB Memorandum Circular 2016-008, suspending the acceptance of applications for Transport Network Vehicle Service (TNVS) in Metro Manila made it necessary for her committee to step in.
The compromise was arrived at a meeting with LTFRB which Senator JV Ejercito, vice-chairperson for the Senate committee on public services, called to forge a lawful compromise between the LTFRB and the TNCs--Uber and Grab.
Poe said that at the meeting, the parties were agreed that one, they will continue with the Technical Working Groups next week, in order to find a win-win solution for both government and the TNCs.
At the meeting, Grab and Uber agreed to share their data with the LTFRB so that the LTFRB, in crafting guidelines, will consider the actual number of TNVS on the road and not just the number of TNVS that have been accredited.
Poe called for all stakeholders to allow the LTFRB to do their job of regulating common carriers to ensure accountability and to prevent the “dynamic pricing scheme” of TNVS from overcharging passengers during peak hours.
“On the other hand, the government must be 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,” she said.
Poe filed Senate Bill 1501 or the Transportation Network Services Act, which will institutionalize and regulate ride hailing services. Both the LTFRB and TNCs have agreed to participate in future hearings when called.
Senator Paolo Benigno "Bam" Aquino was satisfied with the compromise reached by the LTFRB, Grab and Uber during the meeting with senators Poe and Ejercito.
“Now we can focus on a long term solution to ensure that the riding public is protected. I urge my colleagues in Congress to look at our filed Ride-Sharing Network Bill and help us push for its passage,” he said.
Aquino said that he is hopeful with the cooperation of all parties, regulations which are favorable to the Filipino commuters can be applied.
Aquino filed Senate Bill 696 or the Rideshare Support Company Act, which aims to promote and encourage new, affordable and safe transportation options for the commuting public, like Uber and Grab.
The measure seeks to clarify regulations governing TNCs, or Rideshare Support Companies (RSCs), as well as Rideshare Network Drivers and Vehicles.
The senator said that in any industry increased competition leads to improved quality, improved service, and lower prices for consumers.
"For the commuting public, this is a change they have long clamored for," he said.
Once approved, RSCs must obtain a certificate of accreditation from LTFRB before getting an authority to onboard qualified Rideshare Network Driver (RND) after a thorough background check and submission of pertinent documents.
Qualified RNDs must also have a minimum P200,000 per passenger personal accident insurance by licensed Philippine insurer.
For his part, Senator Joel Villanueva filed Resolution 431 on Wednesday calling for an inquiry on the process being followed by the LTFRB in granting franchises to TNVS providers.
Senators Juan Edgardo Angara, Ejercito, Win Gatchalian and Zubiri have signified to co-author Villanueva's Senate Resolution 431, which seeks to inquire and review the process followed by the LTFRB in granting franchises to Uber, Grab.
On July 21, 2016, the LTFRB issued a memorandum circular suspending all applications for provisional authority or temporary permits to operate for TNVS like Uber and Grab to pave the way for a review of the existing regulatory framework applicable to TNVS providers.
The LTFRB has also earlier imposed a P5 Million fine each for Uber and Grab for allowing some of their drivers to operate without permits.
The said decision of the LTFRB has caused uproar among commuters who use the service of TNVs on their daily commute.
At present, more than 100,000 commuters have signed up in an online petition expressing their anger over LTFRB’s plan, citing the benefits of TNVS.
“We want to hear all the stakeholders come up with the best solution to immediately address this problem. At the end of the day, we hope that there will be a fair compromise between the government and the TNVS providers with the end goal of providing more convenient options to our daily commuters,” Villanueva said.
One of the main issues the senator wants to resolve is the failure of the majority of TNVS to acquire provisional authority or certificate of public convenience (CPC) from the LTFRB.
Grab reported that out of roughly 28,000 drivers, only about 4,000 Grab drivers have been granted a provisional authority or CPC. An estimated 72% of the TNVS are, thus, considered as “colorum.”
“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,”
Villanueva said.
On the other hand, the LTFRB is also in the process of creating a Technical Working Group to discuss issues such as accreditation and pending applications, and accountability and dynamic pricing scheme.
“Our country is already marred with serious public transportation problems that have brought inconvenience to the riding public. This issue between the LTFRB and TNVS adds additional burden to our commuters and I believe we must come up with an expeditious resolution that will strike a balance between the government’s role to regulate businesses and at the same time, provide better means of mass transport to the public,” Villanueva said.
Senate President Pro Tempore Ralph Recto said that Malacañang should treat the grounding of Uber and Grab cars in Metro Manila as a “transport crisis” comparable to a “total MRT breakdown or a paralyzing jeepney strike.”
“In a mass transport-starved metropolis of 13 million, these ride-hailing companies provide a crucial service,” Recto said.
“In terms of carrying capacity, these two exceed MRT’s daily ridership of 500,000,” Recto said.
This alone, Recto stressed, should prompt the Palace to step in, “in order to end the inconvenience of the hundreds of thousands who use them.” (SunStar Philippines)