AS you all may know, Grab and Uber cars are now seen as an alternative for taxi cabs, not only here in the Philippines, but across the globe, as well. The main reason being is that riding a Grab or Uber car may be more convenient and may be safer compared to taxi cabs. I have read testimonials that Grab and/or Uber are more convenient than taxi cabs, since you just need a smartphone and a working mobile-data connection in order for you to hail a Grab or Uber car, as compared to the gruesome task of hailing a taxi cab for several minutes with fear of rejection from taxi-cab drivers or overpricing of fare. There are some testimonials, as well, that say that passengers using Grab and/or Uber feel more secure when they rode the same, as the details of the Grab or Uber driver is shown in the mobile application.
Aside from the popularity of Grab and Uber among Filipino commuters, Grab and Uber proved to be popular among starting entrepreneurs, as well. As many claimed, a Grab peer or Uber partner may earn as much as P1,500 to P3,000 per day, if the owner is the driver, as well, and depending on the hours spent on the road. Hence, by reason of this popularity, many neophyte entrepreneurs are venturing to the Grab or Uber business, considering that car dealers are now offering more flexible payment terms for car purchases.
However, on July 21, the Land Transportation Franchising and Regulatory Board (LTFRB) issued Memorandum Circular 2016-008. In the said memorandum, the LTFRB recently suspended the applications for a transportation network vehicle service (TNVS), a government application, which is vital for Grab peers and/or Uber partners to finally launch their transport services on the road. Furthermore, the LTFRB, in the said memorandum, is currently reviewing its existing policies and other relevant and pressing issues regarding the issuance of franchise to TNVS. A plausible reason for issuing such memorandum is due to the increasing rate of TNVS applications from Grab peers and/or Uber partners. According to the LTFRB, TNVS applications for Grab and Uber have ballooned to a total of almost 29,000 applications.
With the said memorandum, Grab peers and Uber partners who are seeking for TNVS applications cannot obviously operate yet on the road, as the same is necessary under the existing laws, memorandums and circulars to obtain a Certificate of Public Convenience. According to the Commonwealth Act 146, otherwise known as The Public Service Law, a public-utility vehicle, before it may operate, must first obtain said Certificate of Public Convenience.
Unfortunately for those who just purchased a vehicle for Grab and/or Uber, they might wait for the said memorandum to be lifted or revoked before they may successfully start their Grab and/or Uber business.