LTFRB seeks Congress help in regulating Uber

The Land Transportation Franchising and Regulatory Board (LTFRB) wants Congress to pass a law regulating online transportation services amid the controversy surrounding the ride sharing application Uber.

 

LTFRB Chairman Winston Ginez told lawmakers during a joint committee hearing on the status of the mass transport system in Metro Manila that Uber vehicles cannot apply for a franchise because they cannot be classified as private vehicles for hire under current LTFRB rules.

 

“Right now, the only vehicles for hire that [can apply] for a new franchise are those that will cater to tourist transport… We think the requirements for vehicles for hire should be updated – and we’re doing that right now as fast as we can – so that the private vehicles for hire under Uber will have a window to apply with the LTFRB,” he said.

 

LTFRB came under fire after it initiating a crackdown on Uber vehicles following a ruling that such services should be covered by a franchise.

 

A Toyota Fortuner under the ride sharing service was apprehended last month in Metrowalk in Pasig City. Its owner was fined P200,000.

 

Uber allows commuters to hail a private vehicle through the mobile app. Customers can track the car they requested and pay the driver through their smartphones.

 

Uber doesn’t own vehicles

 

Ginez acknowledged there is no “hard and fast rule” on regulating Uber because while the private vehicles hailed by clients should obtain a franchise, the company itself does not fall under the Public Service Act, which mandates the regulation of public services.

 

 “The traditional concept of public service says the owner of the vehicle is the one who’s granted the franchise. But Uber does not own the vehicles that enroll to use its service,” he said.

 

LTFRB has set a public hearing on November 24 to determine its jurisdiction over Uber and similar services, Ginez said.

 

The board has temporarily ceased apprehending Uber vehicles after a meeting with the Department of Transportation and Communications and executives of the ride sharing service, the LTFRB chairman added.

 

“At present, there’s no regulation that is out yet so we haven’t been as aggressive. But once the public hearings are done, we would come out with the regulation so that they (company executives and vehicle owners) can come to us and apply for a franchise,” Ginez said.

 

'Filling a gap in the market'

 

While LTFRB is tolerant when it comes to Uber operations – in the absence of a new memorandum circular – lawmakers are split on whether or not the service is illegal.

 

Caloocan City Rep. Edgar Erice believes Uber is encouraging owners of private vehicles to violate the law.

 

“There are legitimate rent-a-car services. This system is simply illegal. We shouldn’t tolerate them. My motion is for the LTFRB to implement the law [and] informing the public that this is illegal and arresting or apprehending all those violating the law,” he said.

 

Manila City Rep. Amado Bagatsing, however, said Congress should not be hasty in penalizing those involved in the service.

 

“It seems it is filling a gap in the market. Its clients find consolation in knowing the vehicles they will ride in are clean and safe. They are serving a certain market, a more discriminating market. But they are still serving the public so they should be governed by the LTFRB,” he said. – VS/JDS, GMA News