A very public Uber spat

An extraordinary event occurred this week. Countless Filipino citizens set aside partisan differences to voice their united support for ridesharing in the country— led by Uber and Grab—against a government effort that would ultimately hurt the service, displace thousands of drivers and well over a million customers.

In a shocking display of tone-deafness, the Land Transportation Franchising and Regulatory Board (LTFRB) said it would not back down and called out the two companies for breaking the rules by allowing drivers to operate without the necessary government permits.

(This is strange because it was the LTFRB a year ago that halted the processing of new driver applications).

Worse, the LTFRB made a strange comparison by painting regulated public utility vehicles in a favorable light. Anyone who has tried to hail a taxi cab in Metro Manila (there are a few exceptions) would find this a laughable thought. Taxi operators, despite their constant complaints that Grab and Uber were hurting their business, have failed or refused to improve until this very day.

Perhaps the LTFRB forgot that ridesharing companies did not ram their services down the public’s throat. Commuters tried it and realized it worked.

This is an unfortunate twist when only last week, ridesharing operators Grab and Uber heaved a partial sigh of relief after admitting that most drivers were operating illegally and were fined P5 million each. During that hearing, the LTFRB leadership added that they supported the technology. That statement now rings hollow given a directive to arrest erring drivers, which would eliminate most of the existing ridesharing driver network.

It is true that Grab and Uber were remiss, but the government has its fault here as well. LTFRB said both companies should show good faith while it creates its technical working group to discuss accreditation, pricing and accountability. That must be quite a group to take more than a year to convene.

It’s a clear case of technology and demand simply outpacing an outdated model of regulation, which, ironically, runs counter to President Duterte’s desire to cut red tape. Regulatory issues need to be addressed. Uber and Grab need to yield as well. But not at the expense of the riding public. —MIGUEL R. CAMUS