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Grab And Uber Might Disappear If They’re Not Accredited By The LTFRB

The LTFRB is yet to renew the accreditation of both Uber and Grab

Despite being one of the best transport services to come out in the past few years, the future of both Uber and Grab is uncertain as the Land Transportation Franchising and Regulatory Board (LTFRB) is yet to renew the accreditation of the two Transport Network Companies (TNCs).

It’s been two years since the LTFRBs Memorandum Circular 2015-015, which required TNCs to obtain LTFRB accreditation, valid for two years, before being allowed to operate. Grab’s accreditation has already expired last July 3, while Uber’s accreditation is set to expire later this August.

While both companies are still willing to keep their operations running while they are waiting for the renewal of their accreditation, things get a little dicier for their drivers. Since there’s already a moratorium on the issuance of new franchises for drivers for TNCs, drivers have had to settle for 45-day provisional authority issued by the LTFRB. The document is renewed every 45 days, and if a driver is caught without it by LTFRB officials, they will have to pay a steep fine of up to Php 120,000. No accreditation means no PA’s for Grab drivers, which is obviously a big problem.

But despite that, Grab Government Communications Manager Fiona Nicolas says it’s still business as usual for them.

“Sinabi ni (LTFRB Chairman Martin Delgra III) na wala naman pong order ang LTFRB para huminto tayo sa operations natin, so magtrabaho lang po tayo ng tama at sumunod sa batas trapiko,” Nicolas said.

And despite the risk of getting caught without PA’s, Nicolas says that some drivers don’t have a choice.

“It’s a matter of personal choice for the drivers,” she said. “They are family men. They have mouths to feed, monthly amortizations to pay. It’s a matter of livelihood for them, not just a piece of paper.”

The LTFRB is set to hold a hearing on July 11 to discuss the TNCs’ accreditations.

Source

John Nieves

John is a veteran technology and gadget journalist with more than 10 years of experience both in print and online. When not writing about technology, he frequently gets lost in the boonies playing soldier.

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