LTFRB nixes Uber van and motorcycle rides

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)

The Land Transportation Franchising and Regulatory Board (LTFRB) has warned a transport network company (TNC) not to implement two new features it wants to offer to commuters, citing safety and fare issues that have yet to be approved by the agency.

According to Aileen Lizada, LTFRB board member, Uber cannot roll out UberMoto in Cebu and UberXL in other parts of the country as these are not compliant with the agency’s terms and conditions for TNCs.

UberMoto allows commuters to book a motorcycle through the app while UberXL can accommodate up to six passengers at a time.

Uber said that UberMoto was in response to Cebu City’s planned release of an ordinance to “level up the operation of habal-habal (motorcycle-for-hire) drivers.” UberXL, on the other hand, was the result of passenger demand for six-seater cars which it said would encourage ride-sharing, thus easing traffic.

“Everybody has a good idea. But if you allow everybody with a good idea to implement it, we would be disorganized,” Lizada said. She added that the LTFRB had disallowed another TNC, Grab, from operating its motorcycle ride-sharing feature, pointing out that encouraging more motorcycles on the road would go against the government’s vision of a modern public transport.

“We are promoting high-capacity transport like buses and P2P (point-to-point) service. You are going against the thrust of the government. You will flood the roads with motorcycles,” Lizada said.

She warned that peer operators who would offer the features may be apprehended for operating without a valid franchise.

As for UberXL, Lizada said that six-seater vehicles under Uber and Grab have yet to be approved by the LTFRB. Aside from possibly affecting the operations of other public utility vehicles like tourist vans, the new feature’s fare structure has yet to be discussed with the agency, she pointed out.

According to the company’s computation, UberXL passengers will be charged a base fare of P60 while P8.55 will be added for every kilometer and P3 for every minute.

“They better stop this UberMoto and UberXL. There has to be a sense of regulation at their end. If they are not able to comply, they better bring their business elsewhere,” Lizada said, quoting LTFRB chair Martin Delgra III’s stern warning to Uber.

The LTFRB is set to hold a meeting on May 23 in which Uber’s compliance will be discussed. Lizada said that if the TNC fails to comply, they may cancel or suspend its accreditation with the agency.

“You have a good program, marketing, but you can’t just implement it without even telling us. We’re supposed to be the regulatory body here,” she said.  -Jovic Yee