LTFRB suspends GrabBike service

MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) suspended the operations of ride-hailing service GrabBike on Wednesday, January 27.

The LTFRB said in a statement that it has ordered MYTAXI.PH to cease offering GrabBike to the public "until the Board and the Department of Transportation and Communications (DOTC) has promulgated guidelines to authorize the service."

The LTFRB said that in a letter dated January 21 and signed by OIC Executive Director Glenn Zaragoza, the agency "directed MYTAXI.PH to cease within 5 days from the receipt of his letter...from offering the public the use of bikes and motorcycles as transportation mode."

The letter also directed the company to explain why the company is offering a service that has not been given a go-signal by the government.

MYTAXI.PH currently has accreditation to offer transport network vehicle services (TNVS), but it does not cover the use of motorcycles or bikes as a mode of transport.

LTFRB Chairman Winston Ginez warned that MYTAXI.PH could face the cancellation of its accreditation if it continues to offer GrabBike.

"We will have no option but to cancel MYTAXI.PH's accreditation if they continue to offer motorcycle transport service which is not part of its business model and not what the Board had envisioned for TNCs and TNVS," Ginez said in a statement.

“As part our mission to ensure the riding public’s safety and convenience, we will not tolerate Transportation Network Companies (TNCs) to provide transport service using motorcycles or bikes until we have set the proper guidelines and regulations,” he added. 

The agency cited road safety data from the World Health Organization, saying more than half of those who die from road accidents in the Philippines are motorcycle riders. – KD Suarez/Rappler.com