The government wants to have a share from the income of ride-sharing companies, Transportation Secretary Arthur Tugade said on Tuesday, amid an impending crackdown on Grab and Uber drivers.
This came about after the Land Transportation Franchising and Regulatory Board (LTFRB) ordered transport network companies Grab and Uber to prohibit unaccredited drivers in their pool from operating beginning July 27.
In a news conference, Tugade said Grab and Uber should get franchises from the LTFRB to ensure safety and qualifications of drivers.
“’Yung trabaho na ‘yun [These jobs] are clothed with public interest. And because [they are]clothed with public interest, the regulatory functions of certain agencies and government must come to fore,” Tugade told reporters.
“It will go into the normal franchising flow . . . [The government should have a share in what they earn],” he said.
According to Tugade, less than 10 percent of 56,000 vehicles operating under Grab and Uber are registered with the franchising board.
He said the Transportation department wants to establish a cap in the number of Grab and Uber vehicles plying the roads once it has established compliance in securing permits.
“We wanted to have compliance. Once we have the compliance, then we can establish a cap,” Tugade added.
He then justified the LTFRB’s order, saying that transport network companies should follow regulations or face sanctions.
“Ang sinasabi lang ho ng LTFRB is, ‘Pwede ba, mag-rehistro naman kayo?’ What makes you so different with the other public utility vehicles? [The LTFRB is asking you to register. What makes you so different from other public utility vehicles?],” Tugade said.
“Kung hindi sila mag-apply… pahuhuli ko lahat ‘yan [ If they don’t apply . . . I will have them arrested],” he added.
Recently, the LTFRB fined Grab and Uber P5 million each for violating the terms and conditions of their accreditation, such as the inclusion in their platforms of drivers who do not have franchises to operate.
By July 26, Grab and Uber drivers without franchises will be fined P120,000 and their vehicles impounded for three months.