MANILA -- The Land Transportation and Franchising Regulatory Board on Wednesday clarified that the P5-M fine it imposed on Tuesday, July 11, on Uber and Grab for various violations is a way of putting things in order.
"Because they are new players ... while we embrace the technology, we made it clear sa kanila yesterday that we have to put things in order," said LTFRB spokesperson Atty. Aileen Lizada in an interview on Unang Balita.
"If we follow the Memorandum Circular 2015-016 dated May 28, 2016, ang nakalagay dito is cancellation of accreditation. Ngayon there is such a thing as compassionate justice po no. And ang guidance kasi sa amin ng Congress is that continue to accredit TNCs [transportation network companies] while we await legislation from Congress," Lizada said.
"Kaya ang nangyayari ho ngayon sa LTFRB, whenever we see concerns that we need to address, then we act. Or kagaya nung December, we put a price cut on their surge. There is only two ngayon lang ho. And then we ask for their master list [of all their partner operators],"
On Tuesday, LTFRB imposed the P5-million fine on Uber and Grab for various violations of terms and conditions. These include allowing Transport Network Vehicle Service (TNVS) drivers to operate even without Certificate of Public Convenience (CPC) franchise or Provisional Authority (PA).
Grab Philippines on Wednesday, June 12, said it will comply with the P5 million fine.
"The fine itself is the message already why we needed to sanction them for violations of their terms and conditions, one of which is that only duly franchised TN vehicles should provide a prearranged ride," Lizada said.
The LTFRB spokesperson added that the board will create a technical working group with Uber and Grab "so we can understand them better."
Lizada clarified that the LTFRB accredits TNCs, but they give franchises to TNVS, who are the partner operators of the TNCs.
"Hindi ho colorum ang Grab, Uber, U-hop. They are accredited. Ang mga colorum dito, 'yun ho ang aming iniiwasan na malagay sa alanganin, 'yung mga ina-accredit nila. Because they think na pwede silang mag-book ng rides once meron silang app. Hindi ho. 'Pag may case number kayo, pag may PA [Provisional Authority] kayo, diyan na kayo pwedeng mag-book ng rides," Lizada said.
"So right now ang sinasabi namin, only those with PAs, I hope, Grab and Uber are listening, only those with PAs and CPCs [Certificate of Public Convenience] must be on the road to book a ride. We will fine-tune everything next week when we create the technical working group," she added.
Lizada added that Congress has given the LTFRB the authority to give a franchise. "Mananagot ho kami sa Kongreso if we do not comply also with our mandate," she said.
"We are balancing and looking at the bigger picture because to the patronizers of Uber and Grab, if we want to hit hard, ang penalty ho talaga ay cancellation ng accreditation. Then you will no longer have Uber and Grab. Is that what you want? Hindi naman siguro," Lizada added.
"Kaya nga inaayos natin because we see that there is a niche, there is a demand for them. But we have to put things in order," she said.
Grab's accreditation is up for renewal in July, while Uber's is up for renewal in August, Lizada said. — GMA News