Grab, Uber open to franchise requirement

MANILA - Grab and Uber told lawmakers Thursday they were open to securing franchises from the state, as they wrangled with regulators on the scope of government authority over ride-sharing services.

Grab is open to a franchise requirement both for itself and its partner drivers, said the company's head of government and public relations Leo Gonzales.

Uber, on the other hand, said the franchise requirement should be limited to drivers since the company "is not engaging in the actual transportation of a person," said Yves Gonzales, its government relations and public policy head.

The Land Transportation Franchising and Regulatory Board classifies Grab and Uber as TNC or transport network companies while their partner drivers are considered as TNVS or transport network vehicle services.

"We are not adverse to regulations. The only thing we are only asking for is the right regulations, right processes that look after the best interest of the riding public," said Uber's Gonzales said.

The LTFRB earlier fined Grab and Uber P5 million each for allegedly allowing unlicensed or "colorum" drivers. A plan to deactivate as many as 50,000 cars was postponed to give way to negotiations.

"For every colorum violation, we want the transport network company to be liable because they are the ones activating those applications into their systems," LTFRB board member Aileen Lizada told the same congressional hearing.

"The LTFRB is not against Uber and Grab. We just want to see some kind of regulation," Lizada added.

A group of taxi operators welcomed the development as it would level the playing field for transportation providers.

"We have nothing against TNCs, we can all co-exist but we cannot regulate one and deregulate the other," said Bong Suntay, president of the Philippine National Taxi Operators Association.