The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday slapped Uber and Grab with a P5-million fine each for various violations of terms and conditions.
During the hearing, LTFRB Chairman Martin Delgra and Board members Atty. Lizada and Engr. Ronald Corpus found that Grab and Uber violated various terms and conditions of the Certificate of Transportation Network Company (TNC) accreditation under the Memorandum Circular Number 2015-016.
Representatives from Grab and Uber admitted during the hearing that they have allowed Transport Network Vehicle Service (TNVS) drivers to operate even without Certificate of Public Convenience (CPC) franchise or provisional authority (PA).
"It appears that TNCs are not without fault for having these TNVS operating illegally and eventually apprehended. We need to be mindful of our responsibilities not only as TNVS but also as TNCs because you as owners of this digital technology that brings the riders and driver together has the equal responsibility as of those who have secured franchises under the public transportation service," Delgra said during the hearing.
"We note also the candidness of the parties concerned… Uber and Grab in admitting the fact that they are privy of having the situation which brought on the colorum operation of TNVS under their system," he added.
"There were a number of terms and conditions which are not complied with TNCs. Among which is putting up in the apps of the respective TNVS the license plates and as well as the case number," Delgra said.
Delgra also noted the supposed non-compliance of the TNVS on screening their applicant drivers before endorsing them to the board.
Both firms were told to pay the fine the "soonest possible."
The board, meanwhile, did not issue a suspension order against the two app-based hailing services. This means both firms can continue their operations.
The memorandum states that "[a]ny willful violation or non-compliance with the above Terms and conditions shall be a ground for cancellation of Accreditation, subject to notice and hearing."
Lizada said that they have considered the interest of the riding public as the demand, which is why they did not issue a suspension nor cancellation against the two TNCs.
The Board, meanwhile, did not discuss the reaccreditation of Grab and Uber.
Grab's accreditation expired on July 3 and Uber's will expire by August this year. —ALG, GMA News