LTFRB exec: Hard for Uber to obey PCC order extending ops without funds, employees

The Land Transportation Franchising and Regulatory Board on Sunday questioned the Philippine Competition Commission's (PCC) directive to local transport network companies (TNCs) Grab and Uber to continue independent operations beyond April 8.

"On the part of compelling, directing Uber to maintain its apps independently, the question of LTFRB, the paramount concern of the LTFRB is the riding public," LTFRB Board Member Aileen Lizada said in a voice recording sent to reporters.

According to Lizada, it would be difficult for Uber to comply with the PCC's order for them to extend Philippine operations beyond April 8 as the company no longer has the financial backbone to do so.

"Wala na silang funds, wala na silang grants, wala na silang employees. Who will be funding now the business operations of Uber if they will be following the directive of the PCC?" she said.

Over the weekend, the PCC made formal its order for both Grab and Uber to maintain independent operations while it conducts a motu proprio review of the acquisition deal.

Under the Philippine Competition Act, the PCC is mandated to review all business transactions worth P2 billion and above to protect competition in the market and prohibit anti-competitive conduct.

While Grab's acquisition of Uber's Southeast Asian business did not meet the P2-billion notification threshold, the PCC launched its review on April 3 and ordered both TNCs to continue operations pending its completion.

Uber, however, earlier announced that its operations would only be available in the Philippine market until Sunday, April 8, and would cease the following day.

"If the apps of Uber is up, what is the backup system? Where is the support system? 'Yun ho 'yung concern namin for the riding public. Paano na ho sila? Kung magbo-book, may tao ba?" Lizada said.

She noted, however, that it would still be at the companies' discretion whether or not they will comply with the PCC order.

"The best effort [Uber] can do is advise its mother company. Now, its mother company will decide whether to abide or not," she said.

"Kami sa LTFRB, we will continue to process TNVS [transport network vehicle services]. Those who are voluntarily, uniquely Uber who want to be entertained to Grab, we will entertain ho itong mga transfers na ito," she added.

Grab last week said it will continue to process the transition of drivers from Uber into its system, even amid the PCC review.

Should both Grab and Uber fail to comply with the PCC's order, they will have to show cause why they should not be held in contempt and subjected to penalties. — BM, GMA News