DRIVERS of both Uber and GrabCar will be apprehended starting next week should they fail to secure franchise and license requirements from the land- transport regulator.
Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Winston M. Ginez has finally decided to impose a deadline on the transport network companies’ (TNCs) application for provisional authority to operate.
“Uber and Grab Car operators will be apprehended starting on August 21, if they cannot secure the necessary franchise or provisional authority with the LTFRB,” he said in a text message on Tuesday.
He warned that these companies and their fleet that fines will be based on the joint administrative order issued earlier this year. An apprehension may amount up to P200,000, plus a three-month vehicle impounding.
Although GrabCar has been accredited as a TNC, its partner drivers have yet to apply for their own licenses.
“A TNC applying for accreditation is different from securing franchise. While GrabCar has already secured accreditation, the LTFRB has not yet receive application for franchise of individual GrabCar operators,” Ginez explained.
Officials of both companies were sought for comment, but only Uber’s spokesman replied to the BusinessMirror’s request.
“Uber is deeply committed to serving the local community and providing millions of Filipino commuters with access to safe, reliable and affordable transport options, creating thousands of jobs and bringing efficiency to Manila’s transportation system,” Uber Spokesman Karun Arya said in an e-mailed response.
He added that his group is working closely with the LTFRB and the Department of Transportation and Communications to finish the requirements.
“We are confident of completing the relevant formalities for accreditation in the time stipulated,” Arya said.
A TNC is an organization that provides prearranged transportation services for compensation using an internet-based technology application or a digital platform technology to connect passengers with drivers using their personal vehicles.
They will provide the public with online-enabled transportation services known as a Transportation Network Vehicle Service or TNVS, which will connect drivers with ride-seekers through an app.
In a nutshell, TNCs are companies that partner with private vehicle owners or even fleet managers to provide private taxi services to consumers.
They entered the Philippine market in 2014.