GrabCar gets government license to roll in the Philippines

GrabCar, the private vehicle booking app available through the GrabTaxi app, has secured an accreditation as a “transportation network company” from the Philippines’ Land Transportation Franchising and Regulatory Board (LTFRB).

In a statement released today, Natasha Bautista, head of GrabCar Philippines, claimed that the service was the first and so far the only app-based car booking service to be issued such accreditation.

This comes nearly two months after the Philippine government legalized ride sharing services in the country. The Philippines is the first country in Asia to enforce specific rules for startups like GrabCar and Uber.

Roberto Cabrera, LTFRB’s executive director, said that the license was about prioritizing passenger safety whilst allowing app-connected services to “revolutionize the Philippine transportation industry.”

“Our GrabCar accreditation by LTFRB is a historical occasion. With full accreditation, more Filipino commuters will be able to use GrabCar and be confident that we offer a legitimate and safe private hire service. We will now focus on rapidly expanding our GrabCar service to serve more passengers across the Philippines,” noted Bautista.

Requirements for accreditation

In May, the Philippines’ Department of Transportation and Communications created a new classification to accommodate app-based car booking services.

On July 3, GrabCar completed the requirements and received full accreditation as an officially sanctioned “transportation network company.”

The requirements for accreditation include a business permit, a certificate of registration issued by the Bureau of Internal Revenue, a business model proposal with proposed fare rates and service charges, and a complaint mechanism against vehicle owners and drivers.

GrabCar is an option provided by Malaysia-based startup GrabTaxi, which taps existing taxi fleets in markets where it operates.

GrabTaxi operates in the Philippines, Malaysia, Vietnam, Thailand, Indonesia, and Singapore. Since its founding in 2012, the company has registered over 100,000 drivers.