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LTFRB warns public vs ‘colorum’ TNVS

January 27, 2023 Jun I. Legaspi 315 views

THE Land Transportation Franchising and Regulatory Board (LTFRB) today warned the public about patronizing two “colorum” ride-hailing apps operating as transport network vehicle services (TNVS) without the necessary permit to operate as transport network companies or TNCs.

LTFRB Chairman Atty. Teofilo E. Guadiz III appealed to the public to stop using the colorum ride-hailing services for their own safety.

Guadiz said they are not “accredited” nor monitored by any government agency for pricing and safety concerns, yet the public continues to patronize them.

“The danger here is that if something bad happens, the public has no company to complain to, which is why I hope the public will stop using their services,” Guadiz added.

Guadiz said both apps are owned by companies operating in Russia and are purportedly operating in many cities and municipalities and several countries overseas.

One platform, fares are supposedly “decided” through real-time bidding exchanges between passengers and drivers, while the other TNC lists a flag-down rate of P10 and fixed rate per kilometer, but passengers may opt to add “tips” or “gifts” to drivers to lure them into accepting their booking.

“Since these apps are not licensed as TNCs, the requirements of financial capacity, terms and conditions of service, customer service, driver accreditation, and training and other crucial requirements are not complied with. Hence, they are not authorized to offer transport services on their app,” Guadiz stressed.

Guadiz added that poor service quality, reliability, and safety due to lax driver recruitment criteria resulting in “low-quality drivers” might also be potential issues, aside from the fact that these firms may not be paying the correct taxes to the government, thus denying the government of potential and much-needed revenue.

He said they will initiate talks with the Department of Information and Communications Technology (DICT) to discuss with tech giants Apple and Google the possible banning of these apps in their respective app stores in the country.

The LTFRB chief said he will instruct the Regional Franchising and Regulatory Offices in the country to issue public advisories in their respective jurisdictions against these apps.

He will also sit down with the Land Transportation Office (LTO) concerning the continuous and strengthened enforcement of anti-colorum activities.