An administration lawmaker on Thursday underscored the need to overhaul regulations of ride-sharing car services such as Grab and Uber and transfer their supervision to the Department of Transportation following the recent move by the Land Transportation Franchising and Regulatory Board to restrict the number of transport network vehicles to only 45,000 cars.
Camarines Sur Rep. LRay Villafuerte said the 45,000 vehicles in the ride-sharing pool specified by the LTFRB was evidently a whimsical figure plucked out of thin air on the part of the regulatory agency as it had not even explained to the public how it had come up with this “‹figure.”‹
“Can the LTFRB elaborate on how it had come up with its number? There appears to be no rhyme or reason to the way the LTFRB has reached this figure considering that it has not even conducted an exhaustive study about the supply and demand requirements of the ride-sharing services offered by transport network companies Uber and Grab,” Villafuerte, vice chairperson of the House committee on appropriations, said.
“‹Villafuerte was referring to reports that the LTFRB would soon limit the number of transport network vehicles plying to only 45,000 vehicles for both Grab and Uber. A common pool of both Grab and Uber vehicles would then be set up and as the need arises, the LTFRB will allow more allow more vehicles to ply Metro Manila’s streets by drawing from the pool. “‹
He said the 45,000 car-limit was obviously too small, given the high demand for TNVs by riders, who now prefer Grab and Uber for their transport needs rather than ride in dilapidated, ill-maintained taxicabs with discourteous and unprofessional drivers.”‹”‹
“Reports show that there are about 100,000 TNVs currently providing ride-hailing services to the public and at certain times of the day, we still find it hard to get a ride. Reducing the number to 45,000 would lead to a severe shortage of TNVs making it even more difficult for commuters to get a ride,” Villafuerte said.
Villafuerte also noted that the rule of supply and demand dictates that when a product or service which is in short supply is in high demand, the price of this product or service drastically goes up.
“The same goes for these ride-hailing services. When they are in short supply, their fares would naturally surge,” he said.
Villafuerte said the LTFRB’s acts have made the public suspect that it was bent on driving out TNVs from the market.
He said revamping the existing regulations for TNVs”‹ attached to companies like Grab and Uber and transferring control over these providers to the DOTr would make the government more responsive to the needs of the riding public.”‹
Meanwhile, Transportation Secretary Arthur Tugade said that person with disabilities (PWDs) will now enjoy a 20-percent fare discount whenever they ride taxis or book transport network vehicle services such as Grab and Uber.
Tugade had tasked LTFRB to ensure “full compliance” of public utility vehicles (PUVs) in granting a 20-percent fare discount to PWDs.
“Napakaliit na bagay nito para sa mga kababayan nating may kapansanan. Kaya sana naman, lahat ng ating PUV operators at drivers, mula jeep hanggang taxi ay sundin ito,” Tugade said.
The DOTr has issued Memorandum Circular (MC) 2018-004, which said that PWDs will only have to present documents such as an identification card issued by the National Council for the Welfare of Disabled Persons or duly authorized local government officials.
The MC was issued in pursuant to Republic Act No. 10754 or “An Act Expanding the Benefits and Privileges of Persons with Disability.”
The DOTr said that those who will not comply faces a fine of P5,000 for first offense, P10,000 for second offense and a six-month suspension of their Certificate of Public Convenience, and cancellation or revocation of franchise for the third and final offense.
