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LTFRB allows Grab, Uber appeal of alleged ‘colorum’ violations

Metro Manila (CNN Philippines, July 19) — Regulators on Wednesday allowed transport network companies (TNCs) Grab and Uber to appeal its order banning illegal operators and drivers without permits.

The legal option was discussed during a meeting among officials of the Land Transportation Franchising and Regulatory Board (LTFRB), Grab, Uber, Sen. Grace Poe, chairman of the Senate Committee on Public Services, and vice chairman Sen. JV Ejercito.

In a statement, Poe said the LTFRB will allow the TNCs to file their motion for reconsideration on the LTFRB order dated July 11. Pending a resolution of the appeal, the so-called “colorum” or illegal vehicles will still be allowed to take passengers.

The LTFRB order bans the operation of transport network vehicles (TNVs) without provisional authority or permits by July 26. The agency would apprehend illegal operations by then.

Grab said it will file an appeal on Thursday.

“Grab is filing a motion for reconsideration tomorrow which will start the process for further discussion on resolving the issues on colorum drivers,” Grab country head Brian Cu said in a statement.

Uber said it will work with regulators to resolve differences.

“The fight is not done. Over the next few days, we will be working with the LTFRB on how we can move forward together,” Uber said in a statement.

Poe said Grab and Uber will coordinate with the LTFRB for the formation of guidelines, and agreed to participate in future Senate hearings.

But she said the LTFRB should be allowed to perform its regulatory function.

“They have to regulate common carriers to ensure accountability and to prevent the ‘dynamic pricing scheme’ of TNVs from overcharging passengers during peak hours,” she said.

“On the other hand, government must be forward-looking. Ride-hailing services is now a necessity because these provide the comfort and reliability that many of our people look for in public transportation,” Poe said.

Ejercito said in his Facebook post he is glad both the LTFRB and the TNCs understood each other.

The LTFRB order drew criticism from users of ride-sharing services. Netizens even took to social media to express their opposition.

New bills filed for TNVs regulation

In response to the issue, Poe said she filed Senate Bill No. 1501 or the proposed Transportation Network Services Act, which aims to “institutionalize and regulate” ride-sharing services.

The bill sets the seating capacity of TNVs at 10, including the driver, and the vehicle’s maximum age at seven years.

Meanwhile, Sen. Bam Aquino wants a public hearing on the issue.

“Sa away na ito, ang mga nagko-commute at mga driver ang pinakatalo. All parties must sit down and iron this out,” Aquino said in a statement.

Aquino also called on Congress to look at Senate Bill No. 626, or his proposed Ride-Sharing Network Bill and push for its passage.

The bill creates a regulatory framework for TNCs.

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