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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