LTFRB issues show cause order, summons Grab to explain deactivation of 8,000 driver accounts

The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday issued a show cause order to MyTaxi.Ph Inc. (Grab Philippines) and summoned the transport network company to explain the deactivation of about 8,000 transport network vehicle service (TNVS) units, which failed to secure provisional authority.

In a statement, the LTFRB said Grab Philippines is set appear before the Board on June 11, 2019 to "explain and elucidate the agency and the public regarding their decision and statement."

On Tuesday, Grab Philippines said it will deactivate at least 8,000 TNVS driver accounts by June 10 for failing to submit proof of provisional authority to operate.

The move will reduce the number of vehicles servicing the commuting public, thus inconveniencing many Filipinos, Grab Philippines president Brian Cu said.

“We hope that this inconvenience will be temporary, as we anticipate new drivers—even those from the 8,000—to take advantage of the 10,000 new slots for application starting June 10,” he added.

The LTFRB, for its part, said it regularly sends a report to Grab containing the list of drivers who apply for LTFRB accreditation."

Drivers who do not apply at all for a Certificate of Public Convenience (CPC) should have already been deactivated by Grab per LTFRB order issued months ago," the LTFRB said.

"As of today, June 6, 2019, there are more than 5,000 provisional authorities issued by the LTFRB that remains unclaimed by applicants," it added.

Apart from the deactivation of 8,000 units, Grab Philippines will also have to address complaints by the public regarding its failure to implement the 20% discount for PWDs, senior citizens and students under Memorandum Circular 2011-004, and if a mechanism exists for Grab to remedy the failure to apply the required discount after a completed ride as part of their compliance to the show cause order, according to the LTFRB.

Sought for comment, Grab Philippines said it will issue a statement on the matter tomorrow."

The LTFRB stands by its commitment to its mandate of ensuring the safety of the riding public and drivers through the rigorous implementation of its issued rules and regulations," the agency said. — MDM, GMA News