LTFRB to extend franchise validity of Grab, Uber, U-Hop

The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday said it will extend the validity of the franchises of Transport Network Companies (TNC) like Grab, Uber and U-Hop from one year to three years.

"Sa ngayon it's tied down, it's actually one year. Why not extend it to more than one year? So nakita namin na three-year period is reasonable," LTFRB chairman Martin Delgra III said at a press conference in Pasay City.

"Katanggap-tanggap naman po din yung proposal namin doon sa mga TNCs para hindi naman pabalik-balik as often they would to renew their franchises."

Delgra said this was agreed upon during their third technical working group (TWG) meeting on Wednesday. 

The LTFRB will release a memorandum regarding the extension by the end of September.

Meanwhile, LTFRB board member Aileen Lizada told reporters that another condition discussed in their TWG meeting was that fleet management among TNCs will be removed.

Both Grab and Uber have at least 200 operators with fleet, according to Lizada.

Lizada also said the LTFRB will come up with a common poll number for the TNCs in order to address the demand. The board will also conduct consultations with the TNCs every three months to review demand and policies.

"Let us put on a common pool, a common base, a common pie for all TNCs. Kasi otherwise, kung may TNC na new player baka hihingi ulit ng 50,000, let's put a TNVS pool. Let us study that," she said.

She added that both Grab and Uber told the board that they need at least 8,000 to 10,000 active drivers per hour.

Uber has over 66,000 transportation network vehicle services (TNVS) units with only 2,500 units holding a provisional authority (PA) from the LTFRB and 1,000 that have a pending application from an extension of the PA.

Grab, on the other hand, has 52,398 units, of which only 3,000 to 4,000 hold a provisional authority.

Lizada said that the LTFRB will issue IDs and stickers to TNVS drivers who have franchises.

"We will also issue an ID, ang validity period niya ay one year and then stickers. Yung stickers na for TNVS kasi dapat meron silang trade dress, eh ngayon walang trade na nakikita. So LTFRB will be issuing stickers to those only with franchises," she said.

Grab and Uber were earlier fined P5-million each for failing to comply with various terms and conditions stated on the certificate of accreditation under the Memorandum Circular Number 2015-016.

Both TNCs admitted that they have allowed their drivers without CPC and PA to operate.

Uber then faced suspension after defying the moratorium on accepting new drivers into their platform. The ride-hailing app paid P190-million to the LTFRB for the lifting of the suspension.

Grab's franchise had expired in July while Uber's expired in August. —KBK, GMA News