LTFRB urges Uber, Grab to help drivers financially

The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday urged Transport Network Companies (TNCs) Grab and Uber to shoulder the financial obligations of drivers affected the by suspension order and not put the blame on the government.

"Do not throw this to us, TNCs. We bring it back to you. You have earned millions already. You pay for their bank amortizations, you pay for whatever damages," LTFRB Board Member Aileen A. Lizada said in a press conference in Quezon City.

Several Transport Network Vehicle Services (TNVS) providers appealed to the LTFRB, to let them continue operating to meet their financial needs, considering that many of them quit their day jobs went fulltime to drive for Grab or Uber.

"Pay them their amortization. Give them an amount respectable and decent for them to have a living ... It is not our fault. Kayo ang naglagay sa kanila sa alanganin," Lizada said.

Both companies supposedly admitted accepting new applications despite the suspension ordered issued by the government on July 21, 2016.

Lizada noted that Uber and Grab were each making more than P60 million a month, saying the ride-hailing companies have enough money and could afford to pay for the drivers affected by the suspension order.

According to the LTFRB, Grab Philippines gets a 20 percent share from each booking made. The board estimates that each Grab unit makes at least P12,000 a month, net of expenses.

With at least 25,000 units currently operating, Grab makes P60 million a month, according to LTFRB estimates.

On the other hand, Uber gets 25 percent from each booking. If each of the 25,000 Uber unit makes P12,000 a month, then the company is making around P75 million a month, the board also said.

"Uber and Grab, alam niyo ba ang ginawa ninyo? We are taking the blame sa inyong remiss sa inyong duty," Lizada said.

According to the data released by Lizada, some 72 percent of the TNVS will be considered as "colorum" next week, and the LTFRB will start apprehending them on July 26. — VDS, GMA News