MANILA, Philippines — The recent order of the franchising board to suspend operations of ride-sharing vehicles without government-issued certificates is seen to have a massive impact on millions of commuters.
"It will be catastrophic," said Yves Gonzalez, who heads public policy at Uber, in a statement to Philippine STAR columnist Boo Chanco. "It's equivalent to ordering us to just shut down."
Gonzalez said Uber could even not meet the current demand for ride-sharing services, which boomed in recent years in Metro Manila, where gridlock and public transportation woes harass commuters daily. The transport network company falls short in delivering vehicles to app users by 20 to 30 percent, he said.
Last July 11, the Land Transportation, Franchising and Regulatory Board, which regulates public transportation, released a memorandum saying that “both Transport Network Companies (Grab and Uber) are directed to cease with dispatch the operations of all their (Transport Network Vehicle Service) TNVS which do not have the required Certificates of Public Convenience." The order will take effect on July 26.
Gonzalez, who previously worked for the Metro Manila Development Authority, painted a bleak scenario once the LTFRB's memorandum circular takes effect.
"Fares will be max all the time, wait times will be hours not minutes. People will just not be able to get a ride overall. Imagine how hard it is to get a ride now on a Friday night with the existing supply. When you remove the unregistered, it’s an impossible situation for everyone,” he said.
There are an estimated 56,000 Uber and Grab vehicles, but only 10 percent of these were properly registered as ride-sharing vehicles, said the franchising board. About 30,000 are considered illegal and are in danger of being impounded.
The board’s order was backed by Transportation Secretary Arthur Tugade who said that the agencies are not against Uber and Grab, but only after the registration of "colorum" or illegal vehicles.
“Ang sinasabi lang ho ng LTFRB is puwede ba mag-rehistro naman kayo. What makes you so different [from] other PUVs (public utility vehicles)?” Tugade said.
Uber, however, said “it is counter-intuitive to force fit regulations drafted for 100-percent public utility vehicles to technology companies and its partners.”
The LTFRB has also been criticized for the slow processing of the applications of franchises. Moreover, it stopped receiving applications for new TNVS franchises since mid-2016. It cited the volume of applications as reason for the halt.
As of Tuesday afternoon, the LTFRB, Grab and Uber agreed at a meeting led by Sen. Grace Poe to temporarily allow unregistered vehicles to operate beyond July 26 pending the resolution of a motion for reconsideration by the companies. As of posting time, Grab and Uber are yet to file the motion.
LTFRB agreed to defer implementation of July 11 ruling pending resolution of appeal filed by Grab, Uber. @PhilippineStar
— janvic mateo (@janvicmateo) July 19, 2017
'Government also at fault'
In an online petition on Change.org calling for riders' support, a driver named Bobby Coronel said that he and his fellow ride-sharing drivers were deemed "colorum" because they do not possess Provisional Authority of the Certificates of Public Convenience to operate. "But this is not our fault," he wrote.
"After undergoing stringent screening, training, and drug tests, we received our accreditation from our TNC, in this case, Grab Philippines. This is a requirement to be able to apply for TNVS PA with the LTFRB," Coronel wrote in the online petition.
He said that while Grab approved the private accreditation, the application for the certificates with the LTFRB "were not acted upon." Worse, despite the submission of requirements, their applications did not make it to the July 21, 2016 cut-off date when the agency suspended all new applications.
Sen. Poe, who chairs the Senate Committee on Public Services, said she believes the government is also at fault.
“Ang dami pa ngang bus, ang dami jeep na colorum ‘di pa nga nila natatanggal iyan, tapos sabihin natin it’s because they put the passengers’ safety at risk? Ah, so mas ligtas ang ating mga kababayan sa mga bus na humaharurot sa daan at mga jeep na hindi pa gaanong naiinspeksyon,” Poe said in an interview on ANC.
“Mali din sa tingin ko ‘yung ginagawa ng LTFRB. I understand that everybody should be equal in the eyes of the law but then they also have, as a government agency, they need to be able to facilitate issuing those permits without being difficult or unreasonable,” she added.