Philippines' LTFRB Denies Accreditation Bids of GrabBike and RiderKo
Key Takeaways
- •The LTFRB has rejected the accreditation applications of GrabBike and RiderKo to operate as motorcycle taxi platform providers.
- •The board determined both firms failed to prove continued service operation, active participation, and compliance under their previous pilot authority.
- •Both companies had earlier been granted authority to run motorcycle taxi services under the pilot implementation covering Metro Manila and nearby areas.
- •Recommendations from the motorcycle taxi study launched in 2019, covering safety, security, franchising, and regulation, have yet to be released, leaving the sector's regulatory framework unresolved.
- •Separately, the LTFRB has started preparing a feasibility study on proposed special bus routes along LRT-2 to address a significant increase in rush-hour passengers.
The Land Transportation Franchising and Regulatory Board (LTFRB) has rejected the accreditation bids of two motorcycle taxi platform providers (MTPPs) for failing to meet the required standards.
“The order expressly provides that MTPPs whose previous pilot authority lapsed, expired, or was not maintained through active participation and compliance are excluded from the coverage of the order,” Acting Chairman Greg G. Pua, Jr. said in a statement on Monday.
The Transportation department, through the LTFRB, said it has denied the applications of GrabBike and RiderKo. Both firms had earlier been granted authority to operate under the pilot implementation of motorcycle taxi services in Metro Manila and nearby areas. The denials leave both platforms without accreditation as Motorcycle Taxi Platform Providers.
According to Mr. Pua, the board's review found that the two providers failed to meet the conditions set during their period of authority. The LTFRB said the providers were unable to prove continued operation of their motorcycle taxi service, active participation, and compliance with the pilot study.
“For this reason, the board is constrained to deny your application for accreditation as a Motorcycle Taxi Platform Provider,” the LTFRB said in its letter to the two companies.
In 2019, the Transportation department directed the LTFRB to form a technical working group to oversee the rollout of motorcycle taxi services. The study will generate recommendations on safety, security, franchising, and regulatory procedures. Those recommendations have yet to be released, leaving how the sector will eventually be regulated an open question.
Separately, the LTFRB announced on Monday that it has started preparing a feasibility study on proposed special bus routes along the Light Rail Transit Line 2 (LRT-2).
“The initial information that we have is the significant increase of passengers of the LRT-2 especially during rush hours in the morning and the afternoon. Our goal is to come up with new routes that will serve as alternative modes of transportation for the passengers,” Mr. Pua said.
— Ashley Erika O. Jose
Source: BusinessWorld
