Friday, December 11, 2015

Grab a Seat because this is Uber interesting: The TRO on Uber and GrabCar

With the pervasive influence of technology and social media, coupled with the rising demand for a convenient and comfortable means of transportation, app-based transport services like Uber and GrabCar have gained immense popularity. This popularity, however, is greatly opposed by traditional taxi and UV Express drivers who claim that their daily earnings have been slashed by half because of this proliferation of what is now classified as transportation network vehicle services (TNVS).

 In order to protect the interests of its members, Angat Tsuper Samahan ng Mga Tsuper at Operator ng Pilipinas Genuine Organization Transport Coalition (STOP & GO), filed for an injunction (TRO) asking to stop the said companies’ operations. The TRO was granted by the Quezon City Regional Trial Court, but with the clarification that the order would not stop existing operations of TNVS, but would only apply to future the applications of such vehicles. STOP & GO explained that they sought an injunction not because they are against the operations of Uber and GrabTaxi, but to assail the inconsistency of the government’s transport policies.[1] On the other hand, commuters defended Uber and GrabCar by pointing out the inadequacies of current taxi services (e.g. rude and choosy drivers, additional fare).

Several issues come to mind— (1) Does STOP & GO have a cause of action? What rights are being violated? (2) Do companies like Uber and GrabCar provide unfair competition, and should the government regulate them?

On the first issue, the Court, in several cases, defined ‘cause of action’ as “an act or omission of one party the defendant in violation of the legal right of the other.”[2] Petitioners alleged that they are denied equal protection of the law as TNVS vehicles are allowed to operate without a franchise. Under the TNVS classification, operators will only be required to obtain a Certificate of Public Convenience (CPC) for every vehicle to ensure accountability. It is the Transportation Network Companies (TNC), or “organization(s) that provide(s) pre-arranged transportation services for compensation using an internet-based technology application or a digital platform technology to connect passengers with drivers using their personal vehicles”, that accredit these vehicles before the Land Transportation Franchising & Regulatory Board (LTFRB) registers them.[3]

Is there a difference between the regular vehicles-for-hire (i.e. taxis) and ride-sharing vehicles? The initial idea behind Uber and GrabCar is to lessen the expenses and maximize the comfort of private drivers and commuters alike through carpooling. The private driver picks up passengers who are headed in the same direction. The “payment” by the passenger is supposed to help driver pay for gas. Regular taxi drivers claimed that this system has been exploited and the so-called private drivers have turned this into a business; it is no longer simply carpooling, but for profit generation. In that case, a favorable treatment toward TNVS is unfair.

On the second issue, should the government let the market to regulate itself? Commuters have preferred Uber and GrabCar because of the quality of services they provide— drivers and passengers agree on the exact fare, drivers are more pleasant and polite, and the vehicles are clean and well taken cared of. Also, passengers are afforded a certain level of security as the drivers are monitored by the TNCs through GPS. Commuters usually complain that regular taxi drivers drive irresponsibly, are choosy with passengers, are rude, and ask for additional fare. It can be observed, however, that enterprising individuals are buying cars for the purpose of earning through TNCs. This sudden increase in the number of cars on the road will worsen the traffic congestion in the country. Government regulation is required not only to ensure the quality of services and the safety and welfare of the passengers, but also to promote an efficient transportation system.

The entrance of companies like Uber and GrabCar in the market is a wake up call to regular taxi operators to step up their game and improve their services. But this entrance must be subjected to fair and consistent policies to level the playing field between the players to encourage healthy competition and sustainable development.



[1] http://www.manilatimes.net/hold-uber-grabcar-vehicle-processing/232810/
[2] G.R. No. 138497, Relucio v. Lopez accessed from http://www.lawphil.net/judjuris/juri2002/jan2002/gr_138497_2002.html
[3] http://www.dotc.gov.ph/index.php/2014-09-02-05-01-41/2014-09-03-06-43-32/125-dotc-creates-new-category-to-usher-in-app-based-puvs

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