LTFRB urged to allow more ride-hailing services to make TNC sector ‘monopoly-free’

A party-list lawmaker on Tuesday urged the Land Transportation Franchising and Regulatory Board (LTFRB) to allow entry of more ride-hailing services in the country to make the transport network company (TNC) service in the country "monopoly-free."

Kabayan party-list Representative Ciriaco Calalang made the call after Grab Philippines announced that it will implement an operational merger with Uber Technologies in the country.

Calalang said the apparent "ride-hailing service monopoly" will be disadvantageous to the riding public given the lack of competition and competitive pricing.

"The urgent task now before the LTFRB is for it to adjust to the new situation by allowing the entry of more ride-hailing services and promulgating sound fare-setting mechanisms," he said.

Uber Technologies has agreed to sell its Southeast Asian business to regional rival Grab, the firms said on Monday.

"LTFRB should proactively encourage other TNCs to enter the Philippine market in order to serve more passengers and break the monopoly of Grab," Calalang said.

Calalang said LTFRB can do so by reducing red-tape, setting new regulations that open the TNC sector to new investors both local and foreign, and creating an environment ready to accommodate new TNCs.

"Such proactive move shall benefit the riding public as healthy competition naturally breeds innovations, new technologies, higher standards, and lower prices," he said.

The lawmaker also pointed out that the riding public needs more choices in TNC services.

Calalang said two or three more TNCs will be able to address the huge demand from passengers not only in Metro Manila, Metro Cebu and Metro Davao, but also in highly-urbanized cities like Cavite, Laguna and Bulacan.

"If, after some reasonable time, the LTFRB is unable or unwilling to protect the riding public with these measures, then it may very soon be necessary for Congress to divest the LTFRB of its power to regulate TNCs," he said.

"Congress might opt to regulate the TNCs with its power to grant legislative franchises or transfer the regulatory authority of the LTFRB over TNCs to another government agency," Calalang added. —Erwin Colcol/KBK, GMA News