Taxi operators urged to shape up to compete with tech-based units

MANILA, Philippines - The Department of Transportation and Communications (DOTC) urged yesterday taxi operators to shape up by modernizing and improving their services to compete with technology-based land transport services offered through Uber, Grabtaxi, and Easytaxi.

Transportation Secretary Joseph Emilio Abaya issued the statement as the Land Transportation Franchising & Regulatory Board (LTFRB) is now crafting an updated set of rules applicable to vehicle-for-hire to modernize the country’s land transportation regulations and accommodate modern solutions.

“People prefer to use these tech-based transport services because they are more convenient. It’s that simple. So my advice to taxi operators: modernize, innovate, and improve your systems and services,” Abaya said.

Abaya pointed out that the government is supporting the use of technology in solving transport problems.

“Commuters say they feel safer taking these private vehicles-for-hire, that the fleet are newer, that app services are faster and more efficient. So why put a stop to what is clearly for their benefit? Poorer services should be upgraded to match their competition – not the other way around,” he added.

Under the current rules and regulations, Uber and similar apps offering vehicle services are currently classified as illegal or ‘colorum.’

The LTFRB has identified the existing “vehicles-for-hire” category as the likely classification for such vehicles, once its scope is updated to accommodate new technological solutions.

As the DOTC is pushing to expedite the process of updating old rules to meet today’s technologies, it is also formulating a taxi reform program in order to mandate improved services to the public.

“The ideal result of these developments is for taxi operations to modernize and improve as well, as this will benefit commuters. I want minimum upgrading requirements such as booking systems through mobile devices, newer and well-maintained fleets, and highly-trained drivers whose identities are disclosed to passengers,” Abaya said.

A partner car of Uber in the Philippines was fined P200,000 after it was apprehended by LTFRB last Oct. 14 due to the absence of a franchise to operate as a public vehicle.

At a Congressional inquiry earlier this week, the LTFRB said it would conduct a hearing on Nov. 24 in relation to the said updating of land transport rules and regulations.