LAND Transportation Franchising and Regulatory Board (LTFRB) Chairman Martin Delgra III has instructed the Central Visayas regional office to resolve the 815 pending applications for Uber and GrabCar in Cebu.
In their meeting on Tuesday in Cebu City, LTFRB-7 Assistant Regional Director Rey Elnar reported that of the 815 pending applications, 693 are from Uber and 122 are from GrabCar.
Elnar said 21 of the 103 Transport Network Vehicle Services (TNVS) operators and drivers, who were given a provisional authority (PA) to operate for 45 days and renewable for another 45 days, have renewed their PAs.
In a news conference here, Delgra said the regional office should start processing the applications, so drivers of ride-hailing mobile applications such as Grab and Uber, could already acquire a PA.
He said the applicants should first comply with all the requirements before their applications will be processed by the regional office such that the Uber or
GrabCar drivers should be licensed professional drivers.
“There were no franchises issued? Work on it as long as there are pending applications,” Delgra told Elnar in dialect.
Before the news conference, Delgra met with TNVS and taxi operators behind closed doors.
Delgra said the technical working group (TWG), composed of LTFRB, Uber and GrabCar, is now crafting regulations on TNVS, which would be attuned to the business model set by the TWG.
In its order dated July 11, the LTFRB directed both transport network companies (TNC)—Uber and GrabCar—to deactivate their TNVS partners without PA or franchise owing to alleged price surging.
Delgra added the LTFRB is supporting the TNVS. But he said TNCs should comply with the provisions of the law.
“There is a room for everyone, especially issues on public transport, since we need to meet the demand,” he added.
The LTFRB has imposed a P5-million fine each on Grab and Uber for violating provisions of the certificate of TNC accreditation under Memorandum Circular 2015-016.
“Grab is complying. Uber, however, is still accepting applications for TNVS. We already issued a show-cause order to Uber on why their certificate of accreditation should not be cancelled,” Delgra said.
He added they will continue to be relentless in their anticolorum campaign, since it is one of their mandates.
Elnar explained to reporters that no franchise was issued after the suspension of new applications last September 1, 2016.
He said they were waiting for directives from their central office to prevent any technical issues.
While waiting for the directives, LTFRB-7 issued PAs to the applicants, which allowed them to operate for 45 days; this was also renewable. The validity for a franchise lasts for one year.
The reason only a few were given PAs is their noncompliance of the requirements, such as operator’s data sheet, statement of financial capability, location map of garage and certificates from Bureau of Internal Revenue and Department of Trade and Industry.
“We will discuss this with attorney Edwin Antipuesto, our hearing officer, for the process of the applications,” Elnar said.
Delgra also reported the number of colorum vehicles apprehended have risen compared to the last two years.
“We are proud to say that compared to last two and a half years, we have actually apprehended almost 300 percent during the first year in our office,” Delgra said.
The apprehension also translates to almost 200 percent in fines and penalties in relation to colorum vehicles, which include Grab and Uber who paid P5 million each.
Delgra added the LTFRB is not just going after colorum TNVS but colorum public-utility vehicles as well.