Uber-frustrated over red tape

FILE – In this Tuesday, Dec. 16, 2014 file photo, a man leaves the headquarters of Uber in San Francisco. Drivers for Uber and other companies most often are considered independent contractors who are self-employed. Rather than receive a W-2, they’ll get a 1099 form reporting their income. (AP Photo/Eric Risberg, File)

If you think the roadblocks that ridesharing firms like Uber and Grab face have gone away after they meekly complied with regulators’ demands for surge pricing ceilings over the holidays, think again.

As it turns out, being a ridesharing firm in the Philippines is as difficult as ever, despite the demonstrable benefits they’ve brought to the long suffering commuting public, especially in major urban centers like Metro Manila and Cebu.

According to a position paper written by Uber—a copy of which was obtained by Biz Buzz—the process of becoming a service provider for a ridesharing firm continues to be loaded with bureacratic red tape.

Take for instance the documentary requirements. The process to acquire a permit to drive on a ridesharing platform requires anywhere from 16 to 21 documents to be submitted to regulatory agencies. And if you think that’s bad, just remember that a would-be Uber driver or operator will have to wait at least three months, and sometimes as long as six months, for his application to be processed. That means six months more for any single commuter to either suffer his or her commute on a creaking train or bus system, or worse, aggravate vehicular traffic by driving his own vehicle.

“The Philippines needs progressive regulations to improve mobility,” the Uber position paper read. “Ridesharing has become a safe, reliable and convenient transport option for many Filipinos and a viable solution to easing traffic congestion.”

But it quickly lamented that “the regulatory environment has made it increasingly tedious to amplify the benefits of ridesharing and make it more accessible to a wider driver and rider base.”

As a result, “the Philippines has one of the highest costs and barriers to entry for ridesharing,” it said. Ouch.

So what do ridesharing firms want? It’s simple, really.

All the government has to do is implement some common sense proposals like streamlining processes and putting them online to help ensure that regulatory delays and red tape is reduced.

“The existing paper document submission process is prone to errors, misplacement of documents, and leads to unnecessary delays in processing and difficulties in storing documents on the part of the regulators,” Uber said.

“Regulations should prescribe ends, not means, based on specific public safety outcomes rather than the narrow methods for obtaining them,” the firm added. For Uber, this means that the goals of a proposed government requirement for cameras in all vehicles are already accomplished by its “de-anonymized” transport model, including GPS tracking and two-way accountability features.

“Regulations should acknowledge the unique traits of ridesharing,” the firm said. “Ridesharing is demand-responsive, enabling drivers and vehicles to be on the road when they are needed.”

In fact, 41 percent of Uber drivers drive less than 10 hours per week.

“Imposing 1900s era rules such as supply caps and professional driver’s license requirements can erode the contributions provided by ridesharing, particularly in solving traffic congestions in Metro Manila,” the firm added.

(Halfway through the two-page position paper, it becomes evident to any reader that the entrepreneurs behind ridesharing services have become increasingly frustrated with archaic government regulations—perhaps as frustrated as the country’s long suffering commuters themselves.)

“Ridesharing fights congestions in three ways: Consolidating trips into few vehicles across multiple users, reducing the overall need for car ownership, and complementing the use of public transit,” the company said. It also pointed out that 41 percent of Uber riders had eliminated or reduced usage of their personal vehicles because of the service.

And perhaps, more importantly, Uber makes it easier to get around for commuters who work late nights such as BPO workers, when late night transportation options are limited.

And despite these regulatory roadblocks, Uber’s own statistics provide an impressive picture of the benefits the service has provided: More than 682,000 active riders over the past three months, 7,000 active drivers during this same period and 211,000 riders for its new uberPOOL service.

The question now is… will these rationale arguments of ridesharing firms convince innovation-resistant regulators and their stakeholders in the traditional transportation sector? Don’t hold your breath. —Daxim L. Lucas