Uber and Grab went on the defensive Friday, saying their operations helped ease road congestion as the Department of Transportation ordered a review of existing regulations and placed on hold thousands of new applications in Metro Manila.
The government’s review of policies for the Transportation Network Vehicle Service (TNVS), which covered this sector, was due to the “sheer volume of applicants” and ridesharing fare-setting schemes that remained unregulated, DOTr spokesperson Cherie Mercado said.
Both US-based Uber, which has a wide global footprint, and Malaysia’s Grab, the biggest ridesharing company in the region, insisted that they provided a crucial service and that their presence did not worsen Metro Manila’s traffic-strangled roads.
“TNVs do not add to the congestion on the roads in Manila. In fact, we offer the solution by providing vehicles the technology that utilize GPS data to work around traffic and road hazards,” Grab Philippines country head Brian Cu said in a statement.
“At the moment, there is still more demand for our services than supply and the capping of applications will only take away an alternative for individuals who want to earn extra or those who want to improve their livelihoods,” Cu added.
Uber Philippines issued a similar statement, citing its carpool service to lessen vehicles on the road.
“This decision also impedes our goal to get more people into fewer cars. Fewer drivers on Uber leads to lower reliability of service for riders in Metro Manila, who have come to rely on Uber as a viable alternative to buying and driving their own private vehicles,” Uber said.
According to the DOTr, the review would affect about 29,000 pending applications as of July 15 this year. Of these, 23,000 applications alone are for Uber. Grab had 5,727 applications while UHOP had 131.
The review was formalized via a memorandum from the Land Transportation Franchising and Regulatory Board (LTFRB) dated July 21, 2016.
In line with this, it ordered the “suspension of the acceptance of all TNVS applications proposing to ply on the route within Metro Manila or entering Metro Manila.”