Philippines becomes first country to regulate Uber nationwide

The Philippines has become first country to establish a regulatory framework governing Uber and other Internet- and app-driven ride-sharing services, the government announced Tuesday, after criticism that the nascent industry is unsafe and lacks protections for consumers and drivers.

The nation’s Transportation Department will issue guidelines for companies such as Uber and GrabTaxi on Wednesday, a spokeswoman said, in a bid to promote better transport services and protect consumers. 

Ride-sharing services — typically Internet- and mobile-app-based alternatives to traditional taxis — are gaining popularity in the capital, Manila, which is notorious for its creaking train systems, malfunctioning buses and traffic jams.

The new framework makes the Philippines the first country to have nationwide rules on ride sharing, according to the Transportation Department and Uber. Previously, only local and city governments regulated the services.

Under the new rules, drivers who use such apps will now be required to register with a regulatory agency and pay an annual franchise fee, $12, said government spokeswoman Karen Lacsamana.

"We view technological innovation as a driver for progress, especially in transportation, where it can provide safer and more convenient commuting options to the public," Transportation Secretary Joseph Abaya said in a statement.

Ride-sharing services have come under fire in recent years from critics who argue they are unfair competition to traditional taxi companies, mistreat workers and are unsafe.

Abaya on Tuesday said that regulating ride-share services would compel traditional transportation companies to modernize, innovate and be more competitive. "At the end of the day, when there's competition, there's better services for people," he said.

In a statement David Plouffe, an Uber senior vice-president, hailed the Philippine action, which he said would "advance urban mobility, create new economic opportunity and put rider safety first."

Al Jazeera and Agence France-Presse