LTFRB orders suspension of ‘GrabBike’ service

MANILA, Philippines – The Land Transportation and Franchising Board (LTFRB) on Wednesday ordered the transport network company (TNC) MYTAXI.PH, Inc. to stop its motorcycle service called “GrabBike” until the Department of Transportation and Communications (DOTC) creates and releases an official guideline for it.

In a letter addressed to GRABCAR Phils, MYTAXI.PH, Inc. Operations Head Gines Barot, the board said the advertisement of the GrabBike service caught their attention and is being called off since its accreditation does not include operation or use of motorcycles as a mode of transporting passengers.

The company is only accredited to offer the services of Transportation Network Vehicle using digital platform technology as pursuant to the Department Oder 2015-011.

The LTFRB noted that it also considered the safety issues of bikes and motorcycles.

“Be reminded that aside from safety issues, bikes and motorcycles are neither authorized by the board nor the Department of Transportation and Communications to be offered to the public as a mode of public transportation,” the letter dated Jan. 21, 2016 read.

The LTFRB said the order to suspend its motorcycle service is for strict compliance. Otherwise, the company may lose its accreditation as a TNC if it will not stop its operation within five days from the receipt of the letter.

MYTAXI was also directed to explain why the company is engaging in a service that is yet to be authorized by LTFRB.

“From the foregoing, your company is directed to cease within five days from receipt hereof from offering to the public the use of bikes or motorcycles until the DOTC has promulgated guidelines relative to your new service,” the LTFRB said.

“You are further directed to explain and submit in writing why your company engages in a service that is not yet authorized by the board. None compliance with these directives shall cause this board to cancel the accreditation of Mytaxi.ph as a transportation network company,” it added.