DEACTIVATED Grab drivers asked the Land Transportation Franchising and Regulatory Board (LTFRB) to review its policy on acquiring permits to operate transport network vehicle services (TNVS), saying the policy limits the industry and is a disservice to passengers.
In a statement, the group of deactivated Grab drivers totaling roughly 8,000 on Monday sought the amendment of the rules and regulations for the acquisition of provisional authorities (PAs) and certificates of public convenience (CPCs), citing four specific provisions.
For one, they sought to change the hearing process for franchises. They asked the LTFRB to allow transport network companies (TNCs) to represent vehicle owners on their behalf during franchise hearings.
Currently, the regulator only bestows the special power of attorney through the vehicle owner’s spouse, parents and descendants. In the ride-hailing industry, the driver of the car does not necessarily own the vehicle. He could be contracted by the owner to use the vehicle for ride-hailing services.
“TNVS operators affected mostly are those who work abroad, doing part-time work for TNVS, and not based in Metro Manila,” the statement read.
Second, they sought to remove the bank conformity requirement to secure franchises. The regulator requires this document to get a bank certification that it allows the vehicles that are still being paid to be used for public transport.
“Different banks have their own processes and fees in securing this certificate. This requirement is understandable if the business is a company with fleet. But in the case of TNVS, most have only one or two cars in which the business is only under the category of micro to small enterprises,” the statement read.
They also claimed that some banks charge exorbitant fees, including a change of insurance and an increase in monthly amortization.
“To protect the interest of banks, the operator can invest in a commercial insurance of his or her choice,” they suggested.
Third, the affected TNVS asked the LTFRB to recompute the proof of financial capacity requirement, saying that P50,000 per vehicle is too much for a small-time business.
“One of the reasons TNVS operators chose to have this business is to add income to the household, meaning many have no savings of P50,000 and it is only now that they are able to save,” the statement read.
It added the previous board set this at P15,000.
“Unfortunately, the current board increased this by 233 percent or P50,000, making it hard for many small Filipino entrepreneurs,” the statement read.
Last, they sought for a dialog with the board to resolve their issue on the “assume balance requirement.”
“Due to the mentioned problems in securing a CPC, many TNVS operators simply gave up and had their cars assumed or surrendered to the banks. Those who assumed the balance of those TNVS operators are having difficulties complying with the requirements, as CPCs and PAs are nontransferable,” they said.
The LTFRB has yet to issue a statement on the matter. Grab, on the other hand, is currently holding a five-day job fair to help the affected drivers find an alternative source of income while the regulator processes their franchises.
Image credits: Alysa Salen