LTFRB urged: Cancel Uber accreditation

MANILA, Philippines - A transport group called on the Land Transportation Franchising and Regulatory Board (LTFRB) to cancel Uber’s accreditation following the Sept. 8 fare surge.

1-Utak, in a seven-page petition filed with the LTFRB last week, said Uber’s accreditation should be “revoked, cancelled, and set aside” because a Department of Transportation and Communications (DOTC) order that allows transport network companies (TNCs) to operate clearly violates the Constitution.

The May 8 DOTC order allows Uber to set its own fare scheme, the group said.

Uber submitted documents for accreditation on Aug. 17 and this was granted by the LTFRB two days later.

1-Utak said during Sept. 8’s flood and traffic gridlock, the price of Uber’s service increased dramatically, “literally taking advantage of the plight of those seeking to get a ride.”

The group argued that “such undue delegation of fare setting gives TNCs and TNVs (transport network vehicles) unwarranted advantage over other modes of transportation.”  

The petitioners said the fare scheme given to TNCs is not fair to other mode of transportation which operators have “to go through the tedious process of notice and hearing before they can adjust their fares” as prescribed by the law.

1-Utak believes the DOTC’s order also violates “the equal protection clause of the Constitution,” citing that other public utility services have to get LTFRB’s approval for any adjustment fares or additional charges, but TNCs and TNVs can easily dictate and adjust their fares without any limitations.

LTFRB Chairman Winston Ginez admitted that the app-based transportation system is a new transportation mechanism in the country and the board has yet to “set rules on this.”

He said the board will discuss the petition filed by 1-Utak on Sept. 23.

Lawyer Donemark Calimon, who represents Uber, admitted that there was a price surge on Sept. 8, citing the law of supply and demand. He clarified that the price surge was temporary.

“The problem is what if in a particular area there are no vehicles, there are no drivers and that’s where the price surges because it is intended to encourage vehicles away from that area to go to that area? Now, it’s of course up to them if they want to go to the area because of the surge,” he said. 

Calimon said passengers who will book a ride on Uber will still have the option of accepting a ride or not as they are informed beforehand of the price surge.

He said that price surge is not dictated by anyone in the Uber, but “it is a system generated based on the supply and demand.”