Thursday, February 22, 2024

Uber vows to beat accreditation deadline as LTFRB warns of crackdown

Ride-sharing app Uber said it would comply with the requirement of the government for accreditation after the Land Transportation Franchising and Regulatory Board (LTFRB) warned it would apprehend and impound vehicles that are not registered with the agency.

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GrabCar, Uber?s lone competitor in the booming private-car riding business, has already obtained the necessary permit from the LTFRB. The Philippines is the first country in the world to create a legal framework for online-enabled transportation services by creating a new category of vehicles called transport network companies or TNCs.

In a press statement, the LTFRB said all TNCs must comply with its memorandum circulars or risk getting fined of P200,000 per vehicle and three months impoundment. Reports have it that the agency will start its crackdown on Aug. 20.

?More importantly, TNCs such as Uber and GrabCar offering online-enabled transport services and transport network vehicle services (TNVS), which are partner vehicles of TNCs, must apply for accreditation with LTFRB,? the regulatory body said.

The agency noted that ?of the current TNCs/TNVs now offering the services, only GrabCar has so far complied with the accreditation process.?

An Uber spokesperson, however, said the company is now on the process of securing its accreditation papers.

?We are working closely with the DOTC and LTFRB and are confident of completing the relevant formalities for accreditation in the time stipulated,? said Karun Arya, an Uber communications executive for South Asia and India.

Earlier this year, Uber commended the LTFRB and the Department of Transportation and Communications (DOTC) in taking the initiative to coordinate with Uber and other mobile app-based ride-booking service providers in updating the country?s transport regulations.

LTFRB chairman Winston Ginez said that while the government is open to embracing new technology, it wants to ensure the public?s safety and convenience by accreditation of qualified TNCs and issuance of franchises to TNVS operators that meet the legal requirements.


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