By Patrizia Paola C. Marcelo
THE Senate is set to hold a meeting today, Aug. 16, with officials of the Land Transportation Franchising and Regulatory Board (LTFRB) amid the latter’s order suspending Uber Philippines (Uber Systems, Inc.) which the agency upheld after denying the company’s motion for reconsideration (MR).
Uber had suspended its operations as of Tuesday morning but was back on the road by about noontime after it had filed a motion for reconsideration on the month-long suspension order.
But by the end of the day, LTFRB denied the motion, thereby keeping its order in effect.
The LTFRB on Monday suspended Uber’s accreditation of Uber, following what the LTFRB deemed a violation of its July 26 order directing ride-sharing platforms or transport network companies (TNCs) to stop accreditation and activation of its transport network vehicle service (TNVS).
“We do not say the MR to be invalid. The issue is whether the Order will stand. Yes it will stand as it is,” LTFRB Chairman Martin B. Delgra III said in a press conference yesterday.
“While we are in the process of treating the MR, the Order still stands,” Board Member Aileen Lourdes A. Lizada for her part told reporters.
In contrast, when Uber filed its first motion for reconsideration regarding the July 26 order, the LTFRB did not implement accordingly the said order.
Mr. Delgra said on Tuesday: “[Uber] said that ‘we are still accepting applications.’ From their own statement, they already had violated the July 26 (order)…The July 26 order was very clear, that even the acceptance of applications (is not allowed).”
In an Aug. 2 hearing, Uber explained that they only accepted applications but did not accredit or activate the said applications. But this was disputed by the LTFRB in its order by Tuesday night denying the motion for reconsideration.
LTFRB said Uber motorists caught on the road will be fined P120,000 and their vehicles impounded for three months.
Mr. Delgra also said Uber’s reactivation on Tuesday was “akin to contempt.”
“Don’t challenge us too much, don’t tie our hands. Show some kind of respect to the board, show some respect to government,” Ms. Lizada, for her part, said.
LIZADA: ‘BE PATIENT’
Ms. Lizada said they will review Uber’s accreditation and continue with the technical working group (TWG) meetings.
She also said following Uber’s denied motion, “We want them to comply with the terms and conditions of their accreditation, and…even their business design says that they will comply with policies of LTFRB.”
Ms. Lizada also said she was aware of concerns among the riding public. “Be patient. We know your concerns…Trust us that we’re doing the right thing,” she said, adding: “There are TNCs who have approached us for accreditation.”
Uber, for its part, said in a statement following its denied motion: “We are disappointed with the LTFRB’s decision to deny our Motion for Reconsideration, and will comply with the Order. We look forward to urgently resolving this matter, and thank the public for its support over the last 24 hours.”
GRAB: NO ‘PREDATORY PRICING’
For its part, Grab Philippines (MyTaxi.PH, Inc.) asked its patrons for patience given Tuesday’s “unique situation,” with increased demand in bookings due to the suspension of Uber.
Grab Philippines country head Brian Cu said in a press conference on Tuesday that they saw a 10-15% increase in rides and a “larger jump in requests” that they were not able to fill.
“We ask the patrons of ride-sharing to bear with us as there has naturally been an increase in bookings made in the Grab platform,” a statement by the company also said in part.
Mr. Cu said the company has placed a surge cap of 1.4x (1.4 times the original fare for Grab trips).
“We’re not going to take this as an opportunity to cut down on incentives or increase prices,” he also emphasized.
“We are not going to do any types of predatory pricing, I want to assure the riding community of that,” Mr. Cu added.
SENATE TO MEET WITH LTFRB
Senators also weighed in on this matter, with Senator Ralph G. Recto saying in his statement a hearing will be called today by Senator Grace Poe, who heads the Senate committee on public services.
“LTFRB should give the public a tunnel-end vision on when this crisis will end. And most important, it should shorten the length of the tunnel, so that Uber can comply easily,” Mr. Recto also said, adding: “Again this is a standoff that needs to be arbitrated and refereed.”
“The LTFRB has a budget of P535 million this year. It should show taxpayers that it deserves every peso it gets,” Mr. Recto said further.
Senator Sherwin T. Gatchalian, for his part, said in his statement the suspension order “goes too far. It puts the burden of punishment on the shoulders of commuters who have already suffered enough.”
He added: “I am urging LTFRB to lift is accreditation ban and begin processing new TNVS applications from Grab, Uber, and other platforms. The primary goal of LTFRB should be to promote public safety and convenience.”
“During the Senate hearing, Grab and Uber demonstrated with clear evidence that demand for TNVS continues to surpass the existing supply of drivers. It is the government’s responsibility to the commuting public to ensure that this demand is adequately met.”
For his part, Paolo Benigno A. Aquino IV cited a previous Senate hearing on TNVS, where he said a consensus was reached with LTFRB. “I thought we were all on the same page to put our commuters first and to create a new regulatory framework for TNVS and taxis,” he said in his statement.
Senator Francis N. Pangilinan, in his statement, said in part: “As regulators, the LTFRB should be enabling and empowering, not prohibiting of the available technology that has in a way helped solve the lack of reliable, safe, and comfortable means of transportation for the Filipinos.”
“Let Uber operate pending resolution of the issues. We are willing to join any initiative at the Senate that would look into this matter,” he added.
Ms. Poe in her statement confirmed today’s “urgent meeting” at the meeting with LTFRB officials. She said the order “does not solve the problem, but further exacerbates the problem of having an utter lack of safe, reliable, and convenient transportation options for our people.
“The issue is not about road worthiness but one that involves a mere administrative violation, which should have merited a corresponding administrative penalty. The penalty should not further prejudice the public and place the riders’ wellbeing at risk by limiting their options,” Ms. Poe also said.
PALACE BACKS LTFRB
Malacañang for its part threw its support behind the LTFRB’s order, saying that Uber “unduly challenged” the board’s policies.
Presidential Spokesperson Ernesto C. Abella said that while the Palace “affirms” the benefits of services offered by TNCs like Uber, LTFRB was just implementing its job in “regulating common carriers.”
Mr. Abella, quoting the same words from the LTFRB order, said there must be a “balance” between “innovation and laws.”
“I said we do empathize with traveling public. It affects everyone, including us at times,” he said.
“On the other hand, that’s exactly why we wish that the LTFRB and the Uber situation should be completed as soon as possible. It should be addressed and resolved as soon as possible. It (Palace) understands the situation and therefore will support LTFRB,” Mr. Abella added. — with Ian Nicolas P. Cigaral
