Deactivated Grab drivers ask LTFRB, DOTr for ‘understanding, compassion’

MANILA, Philippines – Bracing for financial losses, drivers of Grab who had been deactivated from the ride-hailing service sought for “understanding and compassion” from the Land Transportation Franchising and Regulatory Board (LTFRB) and the Department of Transportation.

Grab deactivated some 8,000 drivers without a certificate of public convenience (CPC), which was a requirement of the LTFRB.

In a press briefing on Monday, June 10, drivers enumerated the following processes which make securing the requirements to get a CPC difficult:

CPC hearing process – Drivers said Transport Netwrork Vehicle Service (TNVS) operators can only be represented by either the spouse, parents, or descendants. They said this requirement affected many operators leading to dismissals and resultingr in monetary losses.

“TNVS operators affected mostly are those who work abroad, doing part time for TNVS, or not based in Metro Manila,” their statement read.

Drivers appealed to the agencies to allow them to issue a special power of attorney to any person they want to represent them.

Bank conformity – This document is secured from banks and allow the units to be used for public transportation.

“Different banks have their own processes and fees in securing this certificate,” the drivers said.

Moreover, they said that this requirement was only good for companies with a fleet of cars. In the case of TNVS, most only have one car or two.

“Many operators cannot comply, some banks will ask for thousands of pesos in fees, plus an increase of monthly amortization,” the drivers said.

Instead of a bank conformity, they proposed getting a commercial insurance of their choice to still protect the interest of the banks.

Proof of financial capability – The LTFRB increased this requirement 233% to P50,000, from P15,000. Drivers said this is hard for many small entrepreneurs. 

“Many have no savings of P50,000, and it is only now that they are able to save…. We pray for the board to recompute the amount that is fair for small businesses,” the statement read.

Due to the problems cited, many TNVS operators supposedly gave up and had their cars surrendered to banks.

Grab urged deactivated drivers to reapply, as 10,000 new TNVS slots will be opened. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.

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