LTFRB: Grab, Uber not yet off the hook

MANILA, Philippines -  The Land Transportation Franchising and Regulatory Board (LTFRB) has warned ride-sharing apps Grab and Uber that they are not off the hook over alleged colorum operations that could jeopardize the renewal of their accreditation as Transport Network Companies (TNCs).

LTFRB Chairman Martin Delgra said in a phone interview that while the board has yet to pass judgment on the issue, the suspension or revocation of a TNC’s accreditation is possible over colorum operations.

Grab and Uber’s applications are on the line after the LTFRB found that some of the Transport Network Vehicle Service (TNVS) drivers under the two TNCs are operating without provisional authorities or franchises, Delgra said.

Grab’s accreditation expired on July 3 while Uber is set for renewal before August.

A show cause order was issued against the three accredited TNCs — Grab, Uber and Uhop — for a hearing tomorrow to probe the issue.

“When they filed their application (for renewal), when we accepted it, instead of hearing the application on the merits, we issued a show cause order instead because we learned that there are colorum operating. We need to ask them why this happened,” Delgra said in a phone interview.

Only around 3,700 provisional authorities and franchises for TNVS to operate have been issued by the board — significantly higher than the 10,000 drivers Grab currently has. Uber has yet to release its own figures.

Delgra also warned drivers that they face the risk of apprehension by engaging in colorum operations, as well as being “blacklisted” from getting proper franchises in the future.