Uber and Grab drivers must put in a minimum number of hours on the road to be eligible for a franchise, the Land Transportation Franchising and Regulatory Board (LTFRB) said Thursday.
LTFRB spokesperson Atty. Aileen Lizada said this following Wednesday’s technical working group meeting with Grab, Uber and Uhop.
The ride-sharing companies explained that more than half of their accredited drivers are inactive or operate for only few hours a week, which means that the supply of units does not meet the demand on the streets.
But Lizada said they cannot issue a franchise to inactive drivers or those who operate for only few hours as a franchise is a privilege.
She said the LTFRB will study how many hours accredited drivers need to be on the road as well as the number of units needed to meet demand.
The LTFRB’s technical working group on ride-sharing services will meet again on August 10.
Regulators are eyeing to release a new memorandum on ride-sharing services by September this year.
Regulators are working out the rules for ride-sharing services after initially threatening a crackdown on over 50,000 Uber and Grab drivers without franchise licenses.
READ: No Uber, Grab crackdown… for now
Meanwhile, Senator Sherwin Gatchalian filed on Thursday Senate Bill 1001 or the Transport Network Service Act which seeks to regulate the sector by requiring stakeholders to apply for a franchise before being allowed to offer their services. — with a report from Sherrie Anne Torres, ABS-CBN News
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