Opinion: Was LTFRB’s sting operation on Uber a favor for a taxi company?

The LTFRB-Uber fiasco has now reached a point where regular commuters have taken to social media to declare its disgust with the transportation regulating body for its censorship of the private taxi’s operations.

My source in the public transportation business tell me that the LTFRB crackdown is a result of complaints made by two major taxi operators in Metro Manila whose businesses have been severely affected by the app.

These operators — who have strong ties to some officials of LTFRB and LTO, according to my source — are curently using either Easy Taxi or Grab Taxi, which are also smartphone apps that allow users to book taxis at the press of a button. 

Easy Taxi and Grab Taxi work with taxi franchise holders whose vehicles are not always in tip-top share. The general population of taxicabs in Metro Manila is rundown, old and are sometimes unsafe.

Uber, on the other hand, works with private car owners and limousine service companies that use latest-model Audi, BMW or, at the very least, Honda Accord cars.

LTFRB Chairman Winston Ginez argues that Uber needs to acquire a taxi franchise if they are to operate within the Philippines. The company has had similar problems in other countries, but says it is willing to comply with local government requirements.

What I don’t get is why LTFRB to hold a sting operation when it could have just initiated a formal investigation — something they would do to bus and taxi companies suspected of violating franchise laws.

Why, for instance, have we not heard of any sting operations against colorum taxi or buses plying our streets daily?

The same source tells me that the taxi companies that complained are the same taxi operators who regularly used the “kabit” system where colorum taxis are illegally attached to the franchise of these operators to get additional income.

These taxi operators have fleets of taxi’s bought from a particular car brand too.

Favoritism?

Photo: Skyway O&M Corp.

 

 

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