LTFRB stops ‘GrabBike’ service operation

MANILA, Philippines – The Land Transportation and Franchising Regulatory Board (LTFRB) on Thursday ordered to immediately stop Grab Bike, Inc. from offering motorcycles as public utility vehicles.

In its letter of cessation of operation, the board said Grab Bike’s operation and use of motorcycles “contravene the Public Service Law and Department Order 2015-011 even without further elucidation.”

“Wherefore, in view of the foregoing, the board hereby orders Grab Bike, Inc. to IMMEDIATELY CEASE AND DESIST upon receipt hereof from offering to the public the use of motorcycle or any similar vehicle until further orders,” the order read.

On January 27, the LTFRB ordered the transport network company (TNC) Mytaxi.Ph, Inc. to stop its motorcycle service “GrabBike” until the Department of Transportation and Communications (DOTC) creates and releases an official guideline for it since  since its accreditation does not include operation or use of motorcycles as a mode of transporting passengers.

READ: LTFRB orders suspension of ‘GrabBike’ service

Mytaxi.Ph on February 1 replied that it has not acted in any other matter that provides ground to cancel its accreditation, noting that Grab Bike is separate from Mytaxi.Ph.

Mytaxi added that it submitted information that Grab Bike services is operated by Grab Bike, Inc.

Prior to the LTFRB’s order, the Committee on Transportation of the House of Representatives on February 3 conducted a congressional meeting regarding bike services where Grab Bike Inc’s Regional  Vice President Nina Teng admitted that that it is operating without authority.

The order was signed by LTFRB Chair Winston Ginez, board members Ronaldo Corpus and Antonio Enrile Inton, Jr.

The board is also directing Grab Bike to submit its written report on the compliance within a day of receipt. It added that non-compliance with the orders will account for penalties.