LTFRB slaps Php 5M fine on Grab and Uber
The Land Transportation Franchising and Regulatory Board (LTFRB) slapped a Php 5 million fine on Transport Network Companies (TNC) Grab and Uber for committing a number of violations such as allowing their drivers to operate without securing permits.
The TNCs admitted they allowed some of their Transport Network Vehicle Service (TNVS) to illegally operate. Grab reported that they have almost 28,000 TNVS, but only 4,000 of them have a provisionary authority (PA) permit, which is valid for 45 to 135 days; and a certificate of public convenience (CPC) franchise that is good for one to seven years.
Among the 10,054 names of active Uber drivers, LTFRB found out that 5,850 of them have dismissed PAs, while the 3,505 drivers are still in the process of applying. More or less, only 2,000 Uber drivers have complete permits.
Due to the riding public’s concern, the Board, however, decided not to suspend the accreditation of Grab and Uber TNVS, so that the transport services won’t be interrupted.
“Since we have been constant to the LTFRB stakeholders, which is the public, we will consider the riding public’s concern because if we cancelled the TNCs accreditation, it’s like penalizing our stakeholders, and it will cause an interruption to their daily commuting. But we still have to address the violations of the TNCs and separate it,” said Aileen Lizada, LTFRB board member.
“For the spirit of our Grab partners, we’re quite happy with the decision – it’s not a cancellation, and it’s not a suspension. So, we, as Grab, along with our Grab partners, will be able to continue to provide the quality service to our partners,” said Grab country head Brian Cu.