Grab Philippines deactivates 15,000 TNVS providers
Published Jun 11, 2019 05:57 pm
By Alexandria San JuanÂ
Around 15,000 unaccredited transport network vehicle service (TNVS) providers have been deactivated by ride-hailing giant Grab Philippines since January this year due to lack of proper documentation.
Deactivated Grab Drivers parked their cars in front of the LTFRB along East Ave in Quezon City, as they protest the deactivation of 8,000 of their fellow TNVS drivers. The deactivation took effect following the statement of Grab Philippines last week that it will deactivate 8,000 of its drivers who fail to submit proof that they were granted provisional authority by the LTFRB. (Mark Balmores / MANILA BULLETIN)
This was revealed in an en-banc hearing of the Land Transportation Franchising and Regulatory Board on Tuesday about Grab's move to deactivate 8,000 TNVS partners who failed to submit proof of provisional authority from the agency.
However, Grab said that at least 3,000 TNVS partners were saved from being removed on the platform on Monday as they completed their requirements before the June 7 deadline set by the Board, while the remaining 5,000 were deactivated.
"As of yesterday, there were around 5,000 drivers who were deactivated because of no documentation, meaning, they were not able to submit proof that they walk through the LTFRB process in securing a provisional authority (PA) or a certificate of public convenience (CPC)," Grab Philippines President Brian Cu said.
According to Cu, Grab has been selectively deactivating 2,000 drivers per month since January, a move which he said started last year in compliance with the regulations of the Board.
Cu explained that the 10,000 deactivated TNVS partners in the past five months were both active but are not compliant with the requirements, and inactive or those drivers that were idle for 90 days.
But Cu explained that some of those removed were reactivated after completing the required documents.
Earlier, LTFRB chairman Martin Delgra III questioned why Grab is deactivating unaccredited only now even if the order to terminate "colorum" TNVS units came months ago.
But the dominant ride-sharing firm explained that they have been regularly submitting a list of deactivated partners to the Board since last year.
Same fare rates, longer booking time
Despite the recent deactivation of the 5,000 TNVS providers, Cu bared that Grab fares will not be affected and surge cap will be still below 2x.
"Prices will not be affected, fares should stay the same. Our team will closely monitor that. Should prices go up, we will adjust fares downwards as we still have commitments to the PCC (Philippine Competition Commission)," Cu assured during a press briefing in Quezon City after the hearing.
However, due to lack of supply of vehicles servicing the riding public, Cu admitted that passengers would expect difficulty in booking a GrabCar not only during rush hour but all throughout the day.
"Magkakaroon talaga ng diffculty in booking. Kung dati ang difficulty is during rush hour, ngayon the difficulty might be experienced across the day," he explained.
But the Grab Philippines head is optimistic that the recent 10,000 slots opened by the LTFRB for new TNVS applications will help in addressing the ride demand.
Last Monday, transport regulators opened an online registration for 10,000 new TNVS units which were immediately filled up within the day.
"The insufficiency of vehicles, baka within a week or two weeks, should be covered nung new slots na nag-open that's what we are hoping for," Cu added.
'Temporarily resume deactivated drivers'
The transport network company (TNC) had also requested the LTFRB to allow the deactivated drivers to resume work to avoid a gap in the ride-hailing market.
"The best scenario for the Filipino people is to have more drivers which results in passenger convenience, and less traffic as car owners will just need to hail a ride, instead of bringing their cars out," Cu said.
"If LTRFB will allow the deactivated drivers to resume work while it processes the application of 10,000 new drivers that would be the best win for the Filipino people."
Deactivating the drivers, according to Cu, is "painful" as everybody loses in the scenario: the drivers who lost their livelihood; and the passengers who will find it harder to hail a ride.
,
With this, Grab has set-up a five-day TNVS Help Center at Matrix Events place, just behind the LTRFB office in Quezon City to help thousands of driver-applicants in assuring that their application documents are complete and proper.
Meanwhile, LTFRB chairman Delgra said that they will still require Grab to formally submit the data of the exact numbers of deactivated TNVS units, as well as the basis on why they were removed.
Deactivated Grab Drivers parked their cars in front of the LTFRB along East Ave in Quezon City, as they protest the deactivation of 8,000 of their fellow TNVS drivers. The deactivation took effect following the statement of Grab Philippines last week that it will deactivate 8,000 of its drivers who fail to submit proof that they were granted provisional authority by the LTFRB. (Mark Balmores / MANILA BULLETIN)
This was revealed in an en-banc hearing of the Land Transportation Franchising and Regulatory Board on Tuesday about Grab's move to deactivate 8,000 TNVS partners who failed to submit proof of provisional authority from the agency.
However, Grab said that at least 3,000 TNVS partners were saved from being removed on the platform on Monday as they completed their requirements before the June 7 deadline set by the Board, while the remaining 5,000 were deactivated.
"As of yesterday, there were around 5,000 drivers who were deactivated because of no documentation, meaning, they were not able to submit proof that they walk through the LTFRB process in securing a provisional authority (PA) or a certificate of public convenience (CPC)," Grab Philippines President Brian Cu said.
According to Cu, Grab has been selectively deactivating 2,000 drivers per month since January, a move which he said started last year in compliance with the regulations of the Board.
Cu explained that the 10,000 deactivated TNVS partners in the past five months were both active but are not compliant with the requirements, and inactive or those drivers that were idle for 90 days.
But Cu explained that some of those removed were reactivated after completing the required documents.
Earlier, LTFRB chairman Martin Delgra III questioned why Grab is deactivating unaccredited only now even if the order to terminate "colorum" TNVS units came months ago.
But the dominant ride-sharing firm explained that they have been regularly submitting a list of deactivated partners to the Board since last year.
Same fare rates, longer booking time
Despite the recent deactivation of the 5,000 TNVS providers, Cu bared that Grab fares will not be affected and surge cap will be still below 2x.
"Prices will not be affected, fares should stay the same. Our team will closely monitor that. Should prices go up, we will adjust fares downwards as we still have commitments to the PCC (Philippine Competition Commission)," Cu assured during a press briefing in Quezon City after the hearing.
However, due to lack of supply of vehicles servicing the riding public, Cu admitted that passengers would expect difficulty in booking a GrabCar not only during rush hour but all throughout the day.
"Magkakaroon talaga ng diffculty in booking. Kung dati ang difficulty is during rush hour, ngayon the difficulty might be experienced across the day," he explained.
But the Grab Philippines head is optimistic that the recent 10,000 slots opened by the LTFRB for new TNVS applications will help in addressing the ride demand.
Last Monday, transport regulators opened an online registration for 10,000 new TNVS units which were immediately filled up within the day.
"The insufficiency of vehicles, baka within a week or two weeks, should be covered nung new slots na nag-open that's what we are hoping for," Cu added.
'Temporarily resume deactivated drivers'
The transport network company (TNC) had also requested the LTFRB to allow the deactivated drivers to resume work to avoid a gap in the ride-hailing market.
"The best scenario for the Filipino people is to have more drivers which results in passenger convenience, and less traffic as car owners will just need to hail a ride, instead of bringing their cars out," Cu said.
"If LTRFB will allow the deactivated drivers to resume work while it processes the application of 10,000 new drivers that would be the best win for the Filipino people."
Deactivating the drivers, according to Cu, is "painful" as everybody loses in the scenario: the drivers who lost their livelihood; and the passengers who will find it harder to hail a ride.
,
With this, Grab has set-up a five-day TNVS Help Center at Matrix Events place, just behind the LTRFB office in Quezon City to help thousands of driver-applicants in assuring that their application documents are complete and proper.
Meanwhile, LTFRB chairman Delgra said that they will still require Grab to formally submit the data of the exact numbers of deactivated TNVS units, as well as the basis on why they were removed.