LTFRB Fines Grab, Uber
Ringo | On 14, Jul 2017
The Land Transportation Franchising and Regulatory Board (LTFRB) fined Uber and Grab for a number of violations.
The biggest of the violation is colorum or illegal operation.
Grab and Uber admitted that they accredited new drivers and operators despite the regulator’s suspension on new application. Grab also reported that only 4,000 of their 28,000 drivers have a provisional authority or certificate of public convenience.
Aileen A. Lizada, the LTFRB spokesperson said the punishment for such violation is revocation of accreditation. However, the agency considered that many were using the services so they just decided for the fine.
“If we follow the penalty imposed by MC (Memorandum Circular) 2015-016, the penalty is cancellation of accreditation, but we have been very constant in our stand that the LTFRB stakeholders are the riding public, so we will consider the riding public’s concern because if we penalize by canceling the accreditation, we are penalizing our stakeholders kasi wala silang masasakyan so we have to address the violations of the TNCs (Transport Network Companies) separately,” Lizada said.
Brian Cu, the Grab’s country manager said the company will shoulder the fine.
“The fine will be absorbed by us as a company. We do not want it to affect our partners primarily, and we will not pass on that fine to our passengers. In fact we might give a celebratory promo for this momentous day to all our passengers,” Cu said.