LTFRB suspends applications for Uber, Grab

By: Michelle Joy L. Padayhag September 01,2016 - 09:54 PM
LTFRB chairman Martin Delgra (right) and LTFRB board member Aileen Lizada gives updates to media on franchise applications in the region. (CDN PHOTO/JUNJIE MENDOZA)

LTFRB chairman Martin Delgra (right) and LTFRB board member Aileen Lizada gives updates to media on franchise applications in the region. (CDN PHOTO/JUNJIE MENDOZA)

THE Land Transportation Franchising and Regulatory Board (LTFRB) temporarily suspended the application for transportation network vehicle services (TNVS) Uber, Grab, and U-Hop.

LTFRB chairman Martin Delgra III confirmed this in an announcement at a press conference yesterday afternoon.

“We will lift the suspension once we are done with the review of the guidelines for TNVS,” Delgra said.

The review includes the standard pricing scheme (fare) and other technicalities.

TNVS are the partner operators of technology providers classified as transportation network companies (TNCs) which include Grab and Uber.

The announcement came two months after a taxi operators group in Cebu filed for a temporary restraining order in court against the issuance of provisional transport permits to taxi operators and motorists that were subscribed to Uber, Grab, and U-Hop.

The June 29 petition by the Metro Cebu Taxi Operators stemmed from an LTFRB order giving Grab, Uber, and U-Hop provisional authority to operate online transport network vehicle services.

The group said the LTFRB allowed Grab, Uber, and U-Hop to operate without certificate of public convenience which violates the Public Service Act.

Meanwhile there were no new franchises issued by the regional LTFRB-7 to public utility vehicles (PUVs) in keeping with the 2003 moratorium.

“We are happy that this does not exist in Cebu. This was also confirmed by the stakeholders here,” LTFRB member Aileen Lourdes Lizada said.

“But this does not mean that Central Visayas is totally corruption free. We still have to assess,” Delgra said.

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TAGS: Cebu, franchise, Grab, LTFRB, service, transportation, Uber

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