LTFRB wary on PCC order allowing Uber to continue ops

Uber logo (Photo: Uber/Facebook)

MANILA — The Land Transportation Franchising and Regulatory Board (LTFRB) has expressed concern that the order of the Philippine Competition Commission (PCC) for ride-sharing firms Uber and Grab to maintain their separate business operations beyond April 8 would adversely impact the safety and welfare of the riding public.

This, after Uber disclosed that it no longer has the funds and manpower to continue its operations.

“If there is a road crash and they would like to file their complaint before Uber, who will respond to their cases when there is no one on board in their office. Their apps might be up but is the back system in place? Is the full support in place?” LTFRB Board Member Aileen Lizada said in a text message to reporters on Saturday.

“Otherwise, we will be requiring Uber to close down because how can the riding public be assured of their safety and convenience when it is only in compliance to the order that their apps will be running but there is no back-up support system?” she added.

The LTFRB said it will continue to process the migration of Uber’s drivers to Grab’s platform.

Grab earlier said that Uber’s Southeast Asia operations will continue only until April 8 after acquiring its ride-sharing and food delivery businesses last March 26.

The PCC has directed Uber to continue operating its app for the duration of their motu propio review.

It has formulated various interim measures that would ensure the credibility and integrity of its review on the merger of Uber and Grab for possible anti-competition concerns during its hearing last Thursday.

Among these include maintaining the independence of their business operations; refraining from sharing confidential information, such as pricing and operations; and refraining from imposing exclusivity clauses.

Both Uber and Grab were also asked to refrain from performing any practice that could lead to reduced viability of their businesses and prejudice the PCC’s power to review the transaction and impose remedies.

The PCC launched its motu proprio review to determine how the Grab-Uber merger would affect the ride-sharing market, as well as its impact on the thousands of Uber partner drivers who could be displaced.

The commission is allowed by law to initiate its own probe if there arise concerns about fair competition, such as the emergence of a monopoly in an industry.