LTFRB stops GrabBike: ‘Wait for our guidelines’
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January 28,2016
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The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered the company that introduced GrabTaxi in the country to stop offering motorcycles for the riding public or it would lose its accreditation as an app-enabled transport service.
In a letter sent to MyTaxi Philippines (MyTaxiPH), LTFRB acting Executive Director Glenn Zaragosa also asked the company to explain why it offered GrabBike when that service was not yet authorized by the transport body.
“As part of our mission to ensure the riding public’s safety and convenience, we will not tolerate transportation network companies (the classification assigned to GrabCar) to provide transport service using motorcycles or bikes until we have set the proper guidelines and regulations,” LTFRB Chair Winston Ginez added in a statement on Wednesday.
The LTFRB noted that while motorcycles can help commuters beat the daily traffic congestion in the metropolis, more than half of those who are killed in road accidents are motorcycle riders.
Citing the study of a leading Japanese motorcycle manufacturer, an average of 16,208 motorcycle accidents are recorded in the Philippines every year. It is also the No. 4 cause of death in the country.
Statistics from the Metropolitan Manila Development Authority also showed that out of 696 road fatalities from January to November last year, 236 were due to motorcycle accidents.
“We will have no option but to cancel MyTaxiPH’s accreditation if they continue to offer motorcycle transport service which is not part of its business model and not what the board had envisioned for TNCs (transportation network companies) and transportation network vehicle services,” Ginez said.
MyTaxi Philippines has not yet replied at press time to the Inquirer’s request for an interview.
The GrabBike service was introduced by the company in November last year for commuters within Makati City and Bonifacio Global City.
According to its app, the rides have a base rate of P40 for the first 2 kilometers, then P10 per kilometer for the next 5 kilometers, and P5 per kilometer for the eighth kilometer onwards. –Erika Sauler
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