The Land Transportation, Franchising and Regulatory Board (LTFRB) will not cancel the accreditation of transport network companies (TNC) Uber and Grab but will fine them P5 million each for their violations including colorum operations.
The LTFRB said that although it supports the services of the TNCs, it does not overlook the violations they commit.
Around 28,000 of these vehicles are considered colorum, the LTFRB said.
Earlier, Grab and Uber appealed to the LTFRB to renew their franchise accreditation because many drivers would be affected if their franchises are cancelled.
The LTFRB issued Memorandum Circular 2016-008 last year directing its technical division and regional offices not to accept any applications for transportation network vehicle services (TNVS), especially those of Uber, GrabCar, and Uhop because of the rising volume of TNVS applications.