The transport regulator in the Philippines has ordered the local unit of ride-hailing unicorn Grab to justify its move to remove about 8,000 drivers from its platform due to lack of permit to operate.
Grab Philppines president Brian Cu earlier said that the 8,000 transport network vehicle services (TNVS) drivers will be deactivated by June 10 for failing to submit proof of provisional authority to operate from the Land Transportation Franchising and Regulatory Board (LTFRB).
In an emailed statement addressed to local media, Cu said the move will “reduce the number of vehicles servicing our community” and thus “inconveniencing many Filipinos”.
Cu said the move is in compliance with the policies of the regulatory body.
But the LTFRB said drivers who do not have a certificate of public convenience should have already been deactivated by Grab per LTFRB order issued months ago.
LTFRB chairman Martin Delgra III said in a press conference that the board has issued a show cause order to Grab to explain its decision and to also answer complaints of an alleged practice of not granting 20 per cent discount to seniors and persons with disabilities.
“The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a Show Cause Order (SCO) to MyTaxi.Ph,Inc. (Grab) on the account of the deactivation of about 8,000 units,” a statement by the government regulator said.
The agency said it stands by its commitment to its mandate of ensuring the safety of the riding public and drivers through the rigorous implementation of its issued rules and regulations.
Grab is set to appear before the LTFRB Board on 11 June 201 to “explain and elucidate” the agency and the public regarding their decision and statement.
In a separate statement on Sunday, Grab Philippines urged affected drivers to reapply. The drivers who will be deactivated, along with new applicants, will be accommodated under the Grab TNVS Assistance Program.
“We encourage all TNVS that will be affected to apply anew, as 10,000 new TNVS slots will be opened,” said the company.