Court suspends Uber, GrabCar applications

MANILA, Philippines - The Quezon City Regional Trial Court (RTC) issued yesterday a 20-day temporary restraining order (TRO) to stop the implementation of government orders that would allow more transport network vehicles (TNVs) of Uber and GrabCar to operate in the country.

The documents were issued by the Department of Transportation and Communication (DOTC) and the Land Transportation Franchising and Regulatory Board (LTFRB).

In a Nov. 27 ruling, RTC Branch 217 Judge Santiago Arenas granted the petition filed by Angat Tsuper Samahan ng mga Tsuper at Operator ng Pilipinas Genuine Organization Transport Coalition (Stop and Go Inc.) president Jun Magno, who filed the petition against the DOTC order and the LTFRB memo in September.

Arenas said the TRO does not stop the operation of online private vehicle booking service providers such as Uber and GrabCar.

He said the TRO covers only the future application for accreditation of TNVs affiliated with these providers.

“We are not stopping current operations of Uber and GrabCar, (the) TRO covers only future applications, if there are any,” Arenas said.

He added that the TRO does not cover TNVs that have been operating prior to the issuance of the court order.

Arenas said he issued the TRO after Magno demonstrated that there is an urgent need for the TRO to prevent grave and irreparable injury to the group’s members due to the sudden and uncontrolled increase in the number of TNVs.

The judge set a hearing for Magno’s petition for a preliminary injunction on Dec. 8.

Magno questioned the DOTC’s order 2015-11, which allowed TNVs to operate as public utility vehicles even without a franchise; and the LTFRB’s memorandum circulars, which provided guidelines on the accreditation of TNVs and TNCs (transport network companies such as Uber and GrabCar).

Magno alleged that the DOTC and the LTFRB seemed to favor the TNVs and TNCs as compared to any other forms of vehicles for hire.

Under Section 15 of Commonwealth Act 146, or the Public Service Act, it states that “no public service shall operate in the Philippines without possessing a valid and subsisting certificate from the Public Service Commission known as certificate of public convenience (CPC),” he said.

Magno said the government accredited TNCs and TNVs are given provisional authority to operate while their CPC has yet to be processed and are thus “operating without franchise.”

Next move

LTFRB chairman Winston Ginez said he has yet to receive a copy of the TRO but the board will “dutifully comply” with the court order.

Uber started operating in the last quarter of 2014 while GrabCar started in the second quarter of 2015.

Ginez said that they have received around 7,304 TNVs from both Uber and GrabCar since Nov. 9.

The DOTC, Uber and GrabTaxi are studying what moves to make following the court order.

GrabTaxi public relations manager Lorelei Olalia said the firm is coordinating with the LTFRB and its lawyers. GrabCar is the on-demand private vehicle service of GrabTaxi.

Uber said in a statement that it was not a party to the proceedings that resulted in the court’s decision but “plans to coordinate closely with the DOTC and LTFRB.” – With Louella Desiderio