LTFRB proposes bill to regulate Uber, online transpo services

MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) is taking a step closer to regulating online transportation services such as Uber, and removing the colorum (illegal) tag that the LTFRB is charging against such services. The LTFRB on Monday proposed to Congress to pass a law that would allow the agency to regulate  online transportation services.

“For us, there is a need for a possible passage of a law that will regulate online transportation services,”  LTFRB Chair Winston Ginez told lawmakers during the hearing of the House of Representatives Metro Manila Development committee.

Ginez said they wanted to conduct a public hearing to find out if LTFRB has jurisdiction over private vehicles that use Uber,  a technology start-up that connects passengers with private drivers for hire through a mobile app of the same name.
“We’ll be calling a public hearing including Uber and taxi operators to come to us and question them whether or not the LTFRB has the power or jurisdiction to regulate these online services,” Ginez said.

The LTFRB had apprehended a driver of a Black Fortuner whose services were tapped by a paying rider through Uber.

The LTFRB acted upon a complaint of the Philippine National Taxi Operators Association (PNTOA), which said that the vehicles hired through Uber should be apprehended for being colorum or for operating like taxicabs without the proper franchise.
He added that under the LTFRB’s existing circulars, only private vehicles for tourism purposes can apply for a franchise.

Ginez also said that since these vehicles are not registered, the commuters who avail themselves of their services are not covered by insurance in cases of accidents or other untoward incidents.

He also clarified that Grab Taxi and other online taxi services are registered with franchises and thus are not considered colorum.

Caloocan Representative Edgar Erice moved for the committee to draft a bill that would stop the practice of using private vehicles for transportation and apprehend the violators.

“This system is simply illegal. We should not tolerate them. My motion is simple: Ask the LTFRB to … inform the public that this is illegal, and arrest or apprehend those violating the law,” Erice said.

Manila Rep. Amado Bagatsing said it is uncalled for to pass a bill that would crack down on an already illegal practice such as colorum.

He added that a bill should also include other unregistered private service like limousines.

“I speak of all vehicles that are rendering services like taxis. Huwag naman tayong exclusive sa Uber lang, though this was brought by public interest,” Bagatsing said.

For his part, Transportation committee chair Catanduanes Rep. Cesar Sarmiento clarified that the committee does not oppose the use of mobile apps to make transportation convenient.

“The Metro Manila Development and Transportation committees are not against the introduction of applications that will improve the services and promote welfare to commuters,” Sarmiento said.

We hope that Congress will act quickly on the proposal, and that in the meantime, the LTFRB will give some leeway to Uber and others to operate their services. -With report by Marc Jayson Cayabyab