
Originally Posted by
machinepistol
Is an Uber car a public utility. You be the judge.
A public utility is a form of enterprise that offers to the public services that they need for their convenience. It is the reason why a license issued to the public utility operator by the relevant government regulatory body is also called a certificate of public convenience and necessity.
It is subject to heavy regulation such as fixing of rates and fares because it is an enterprise that is imbued with public interest. Because their services are needed by the public, public utilities can abuse their market power. And because public utilities tend to be monopolies, they are subject to government regulation.
Normally, power distribution, water distribution, gas distribution and public transportation are monopolies, this is because it is unthinkable for just any Tom, Dick and Harry to lay down water pipes on streets and hang cables overhead. While public distribution is no longer a monopoly in the Philippines due to deregulation, in some countries, it is still a monopoly or at the very least a duopoly. In HK, there are only 2 bus companies. It is easier to regulate that way (fixing of fares, ensuring that bus units are in tiptop condition, ensuring that drivers are respectful, etc.).
When an enterprise is classified as a public utility, the rules applicable to private transactions do not apply. For example, if I want to buy a lot from person A, he/she can refuse to sell if my price is not acceptable to him. The transaction is voluntary on the part of both parties.
In a public utility transaction such as a taxi cab, the transaction is not entirely voluntary. A taxi cab who plies the street and not on its way to its garage has a continuing offer to provide service to the public at the price/fare set by the government. Therefore, once I flag down the taxi cab, the driver has to stop and give me the ride at the price set by LTFRB. He cannot demand more than what was fixed by LTFRB. He cannot refuse to accept me as a passenger.
Now, is an Uber taxi a form of public utility? Does it offer services that the public requires for their convenience? Is it then a public utility that must get a license from LTFRB?
If it is a public utility, can it refuse to offer service to a passenger because that passenger is one who abused the Uber app?
The issue here as well is that the LTFRB'a hands are full with regulating buses, jeepneys, regular taxi and UV express. It cannot even properly regulate these modes of transport and yet it wants to regulate Uber taxis. Tsk tsk.