Uber and Grab not wanted in the Philippines

There is traffic madness in downtown Manila and now the Land Transit Franchising and Regulatory Board (aka LTFRB) is threatening to make matters worse. The LTFRB has already managed to slap both Uber and Grab with a circa USD100,000 fine for operating illegally in the Philippines. The government agency now says that all ride-sharing drivers must have a license by July 26th or face a USD2,300 fine, and the three-month confiscation of their vehicle.

Basically, the LTFRB is the government agency that collects fees from anybody for operating a public conveyance. So far it is estimated that of the 56,000 or so drivers that are operating as ride-sharing drivers, fewer than 3,700 actually have the necessary permit to do so. Apparently, if you have an expired license and have applied for a new one already, then this will be okay. The LTFRB has ordered both services to submit a list of their accredited drivers before the end of the month.

A member of the LTFRB, Aileen Lizada, stated that the agency had actually wanted to revoke the accreditation of both Grab and Uber due to a long list of violations, amongst which was their failure to screen their drivers. However, there is now a significant portion of the commuting public that rely on ride-sharing and a withdrawal of the service would impact their daily lives. Presently, about 25% of all the cars in the country can be found in or around Metro Manila. Ride-sharing is being seen as a way to reduce congestion, just as long as the government can collect the tax on drivers it would seem.

image source: Reuters via ibtimes.ph