THE MOVE of Transportation Secretary Joseph Abaya to legalize the operations of so-called ride-sharing firms such as Uber and GrabTaxi is a boon for the riding public. Earlier targeted by the Land Transportation Franchising and Regulatory Board (LTFRB) for allegedly using colorum vehicles, these firms offer a much safer ride to commuters than many of the cabs plying Metro Manila.
Abaya is correct in observing that technological innovation can drive progress, especially in transportation where it can provide safer and more convenient options to commuters. Noting that app-based transport services—referring to software applications downloadable to one’s smartphone—help address the increasing demand for mobility, the Department of Transportation and Communications created last week the Transportation Network Vehicle Service classification to allow transportation network companies (TNCs) such as Uber and GrabTaxi to exist within the Philippines’ regulatory framework.
But there is growing apprehension over the LTFRB’s plan to regulate these ride-sharing firms. It currently regulates traditional cab operators, yet the news media are replete with horror stories of cabbies robbing, raping or even killing passengers. Colorum cabs abound, especially at night. Many cabbies also turn away passengers heading to certain destinations, particularly during rush hours, or demand extra charges if there is heavy traffic along the way. And anything left in a regular taxi is more often than not considered lost.
Contrast this with the operations of ride-sharing firms. The service lets commuters book through their mobile phone a private vehicle to take them anywhere within Metro Manila. Passengers who book a ride on Uber, for example, can check within minutes on their mobile phone app what kind of vehicle is coming and who the driver is. Payments are charged to a credit or debit card; no cash is involved. The company also conducts a background check on the driver/vehicle owner before being accredited. Passengers are required to open an account where they have to disclose personal details and register a valid credit card. At the end of the service, both driver and passenger can leave feedback for each other.
It’s unfortunate that traditional taxi operators are threatening to sue the DOTC. Instead of complaining, shouldn’t they improve their services to be at par with ride-sharing firms? And this is not the only potential roadblock to ride-sharing. The LTFRB also wants to impose restrictions and requirements that, as the bureaucracy is sadly known for, can end up discouraging prospective ride-sharing participants. The most worrisome is the plan to require a certificate of public convenience (CPC) for all ride-sharing vehicles, which is reportedly not required in other countries where the concept is flourishing.
Just how difficult is it to obtain a CPC? Judging from LTFRB requirements, it can take forever. Among the requirements are: copies of verified application forms; operator’s data sheet; route measured capacity certification from the DOTC; evidence of Filipino citizenship; authenticated birth certificate; evidence of financial capability; certificate of average daily balance from a bank; certificate of business name issued by the Department of Trade and Industry; certificate of registration and official receipt of authorized vehicles from the Land Transportation Office; photograph of units being applied for (front, back and sides of the vehicles, and the photo should include the front page of a newspaper to show the date when the picture was taken); location map and picture with dimension of garage with a transfer certificate of title or tax declaration or contract of lease for the specific garage area; and proof of publication of notice of hearing to be submitted during the actual hearing at the LTFRB. An applicant is also required to personally appear during the submission of an application. Whew!
Transportation regulations should facilitate, not hamper, convenient, safe and reliable services to the public. That’s according to Abaya himself. Smartphone-based transportation companies have transformed the way people move in many cities abroad with a safer, more reliable and efficient option. They are about to do the same in Metro Manila. In ensuring passenger safety, ride-sharing firms are way ahead compared with the traditional taxis. Regulatory authorities would do well to keep this in mind.