Taxi ride-sharing scheme: Council wants LTFRB probe

CEBU, Philippines — The Cebu City Council has urged the Land Transportation Franchising and Regulatory Board (LTFRB) to investigate taxi drivers and operators engaged in ride-sharing scheme that is against the consent of passengers.

The move was through a resolution filed yesterday by Councilor Rey Gealon, who is also the traffic czar of the city.

According to Gealon, he submitted the resolution following several complaints that they received on the alleged ride-sharing scheme.

In his resolution, it noted complaints against taxi drivers and operators engaging in ride-sharing wherein they make stops to pick up other passengers, which were against the consent of the passenger that was already in the vehicle.

"Most ride-sharing schemes by taxi drivers charge fares per passenger, which is often burdensome and only beneficial to the drivers," Gealon cited in his resolution.

According to Gealon, the issue is not only a matter of inconvenience, but also a matter of safety and security, and even a compromise to one's personal space.

He explained that the ride-sharing against the consent of the passengers can be "unsafe and inconvenient" as there is also a risk posed in picking up another rider or passenger.

"In response to these complaints, it is therefore requested that LTFRB investigate taxi drivers or operators engaged in the ride-sharing scheme against the consent of passengers," Gealon's resolution further reads.

He added that the issue can also be categorized in law as "unjust enrichment" adding that taxi drivers or operators charge individual passengers separately though going to the same destination or just along the route.

As Gealon's resolution defines it, the ride-sharing scheme is synonymous with carpooling, where a rider shares a vehicle with other riders. Reportedly, the space is shared, then will make stops to pick up other riders adding that this scheme is common in Cebu City, most especially for long-distance travel.

"LTFRB should take action by investigating and conducting random operations, with the assistance of law enforcement units, then suspend or revoke franchises, after due process," said Gealon.

Service contracting program

Meanwhile, the government has resumed the implementation of the Service Contracting Program (SCP) as a financial assistance to augment the needs of selected public transport operators across the country.

In accordance with Memorandum Circular No. 2023-048 of the LTFRB, the government helps qualified beneficiaries have an additional income through performance-based payouts under Net Service Contracting.

Under the same memo, those qualified as beneficiaries of this program includes the consolidated Transport Service Entities (TSEs) with at least ten units of PUJ (TPUJ, Filcab, or MPUJ) or UV Express (TUVE or MUVE).

TSEs are also required to have a valid and existing Certificate of Public Convenience (CPC) or Provisional Authority (PA), Land Transportation Office (LTO) registration, and Personal Passenger Accident Insurance (PPAI).

In addition to the cost of the transportation of the operators, the government will also provide them with an additional pay per kilometer of their daily fares.

Consolidated TSE of TPUJ, Filcab and TUVE will be given an additional P20 per kilometer covered, MPUJs and MUVE with P26.

Daily trips should be in accordance with the agreed Service Plan of their respective routes.

Aside from that, LTFRB s chairperson Teofilo Guadiz III said that they are also providing 2% percent incentives to their beneficiaries on certain condition.

"Pero bukod sa karagdagang bayad, mayroon pa po tayong 2% incentives na ibibigay sa ating mga benepisyaryo basta't 80% ng kanilang total units ang mai-deploy nila kada araw," said Guadiz III.

With this, the SCP is aimed to not only provide additional revenue to operators, but also encourage operators and their drivers to deliver adequate and quality public transportation services for commuters.

The SCP is initiated by the Department of Transportation (DOTr) and the LTFRB in partnership with the Department of Interior and Local Government (DILG) and different local government units (LGUS) in the country. — /ATO (FREEMAN)