PNT Foreign Exchange $ 1.00 Cdn = P 40.93 Php
12 BUSINESS NEWS PHILIPPINE ASIAN NEWS TODAY April 1 - 15 , 2018
LTFRB action may absolve Uber from PCC order
The Land Transportation Franchising and Regulatory Board ( LTFRB ) is considering to stop the operation of ride-hailing service provider Uber in the Philippines if the latter no longer has back-up or support system that would ensure passenger safety .
Uber was supposed to be integrated with Grab beginning today , April 9 .
Aileen Lizada , LTFRB board member , made this statement in the wake of an order by the Philippine Competition Commission ( PCC ) for Uber and Grab to continue operating independently for the entire duration of its motu proprio review of the Grab ’ s move to acquire its competitor .
The commission ’ s order puts to a halt the consummation of the transaction .
But Lizada said of paramount concern is the safety of the riding public .
While the app may still be online , Uber may no longer employees operating at the back-office system which would address concerns , including accidents , of passengers .
“ Their ( Uber ) app ( application ) might be up but , is the back system in place ? Is the full support in place ? That
Isuzu Philippines Corp . ( IPC ) starts next month the production of modern public utility vehicles ( PUVs ) ahead of the issuance of an executive order ( EO ) granting incentives to those which participate in the eco-PUV program .
But IPC is hopeful it would be able to secure income tax holiday ( ITH ) as a provider of the platform being the only company that makes this on a completely knocked down ( CKD ) basis . IPC also has the highest local local content .
Joseph Bautista , IPC division head of sales , said government hopes to issue by June the EO defining the incentives of program , similar to what it has done under the Comprehensive Automotive Resurgence Strategy ( CARS ).
Bautista said in an interview on the sidelines of the Isuzu Truck Fest at the SMX Convention Center Friday , the Board of Investments is collecting all inputs on how the manufacturers of the platform and the body builders of the PUVs would be able to enjoy incentives on the supply side .
IPC is working with three body builders to meet orders from PUV cooperatives , starting off with 30 units of PUVs , at a suggested retail
is another question that we have to consider , otherwise we will be requiring Uber to close down , because how would you assure the riding public of their safety and convenience ?,” Lizada said .
At the PCC hearing on Thursday , Uber officials said they no longer have capital to fund their operations in the country as well as employees to run their business .
Lizarda said legally , Uber no longer has the franchise to operate as a transport network company after its permit expired in August and its application for renewal is yet to be approved by the LTFRB .
With this , the LTFRB can ensure the existing Uber drivers of a smooth transition to other TNCs , including Grab , to continue their services .
“ What LTFRB can do though is to ensure continuity of the service by processing the Uber transport network vehicles services ( TNVS ) who would like to continue to do ride- sharing , because our paramount consideration is the riding public ,” Lizada said .
LTFRB has shared the master list of all accredited Uber partner-drivers with Grab to ensure smooth transition of 20,000 to 24,000 unique Uber drivers to Grab ’ s platform .
Another option being studied is to require taxis to have their own ride-
price of P1.6 million to P1.8 million . The chassis alone costs about P1.1 million .
But cooperatives get a 5 percent discount for the purchases .
IPC will be making platforms based on the QKR platform , using Euro 4 engines and to be mounted with truck bodies in the Class 2 and 3 categories of the eco PUV program .
These vehicles could seat least 22 passengers , 30 during rush hours ( eight of them standing ).
“ We have been getting a lot of inquiries , orders but we have to work with body builders and we have to start gradually ,” Bautista said .
The Department of Transportation ( DOTr ) has identified pilot areas or routes to test the business model . These are Bonifacio Global City , Senate and Pateros .
Computations on fares and return on investments are still being done but Bautista said the DOTr has proposed to give value-adding schemes so cooperatives will not rely solely on fares in recouping their investments .
These include advertising and merchandising , services like wifi , snacks on board , etc .
According to Bautista , PUVs will not be sold to individual buyers but
hailing apps .
M a r t i n D e l g r a , L T F R B c h a i r m a n , this was condition for the fare hike approved last year .
Lizada said taxis seeking recalibration of their meters will be checked for the ridehailing app requirement .
LTFBR is y reviewing the application of a number of ride-hailing apps developers / TNCs ,
Hype , HereNa , E-Para , GoLag and HIRO .
Grab Holdings , Inc . ( GHI ) and MyTaxi . PH , Inc . ( MTPH ) have earlier announced it was buying the assets of Uber B . V . ( UBV ) and Uber Systems Inc . ( USI ) in Southeast Asia .
Following the deal , the companies started to carry out the terms of the s sale , including the migration of Uber drivers to its platform and the shutdown of the Uber app by April 9 in the Philippines .
In a bid to protect competition in
PUV production starts
to cooperatives which will have the franchise .
Under the PUV modernization program , all existing franchises will be scrapped and cooperatives will have obtain new ones subject to a number of requirements and under a competitive selection process .
“ Cooperatives have to have a garage , their own mechanics ,” Bautista said .
In scrapping the franchises , the
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a looming monopoly , the PCC issued a set of interim neasures to ensure the welfare of the riding public and the drivers while the in-depth merger review of the Grab-Uber deal is ongoing .
“ The PCC believes that Uber is capable of operating its ride-hailing app in the country , despite its claims that it has already exited the Southeast Asia market ,” Arsenio Balisacan PCC chairman said . ( M . iglesisa with R . Castro , Malaya )
government will only give franchises based on a route rationalization plan .
“ The DOTr will study how many vehicles are needed in a certain route . Applicant-cooperatives for the route will have to make a presentation on why they should be granted a franchise ,” Bautista said ,
“ That is the objective of the program , to give the project to the best cooperative which will provide CONT NEXT PAGE