LTFRB to lift moratorium on ride-sharing franchises Feb. 3

THE LAND Transportation Franchising and Regulatory Board (LTFRB) is set to lift on Feb. 3 its moratorium on acceptance of franchise applications for ride-sharing vehicles.

“By Feb. 3,” Chairman Martin B. Delgra III said in a phone interview. “We gave ourselves and TNCs [transport network companies] time to prepare.”

The LTFRB last week set its common base supply of TNC vehicles at a cap of 45,000 vehicles in Metro Manila and nearby provinces, 500 for Metro Cebu, and 200 for Pampanga.

Mr. Delgra said in an earlier statement the idea of a common base supply came from the transport network vehicle service (TNVS) operators and “dual citizen” drivers or those accredited in more than one TNC, adding that with the new order, TNCs are now “free to get the supply” for their networks.

He noted that the ceiling of 45,000 for Metro Manila was determined in light of the churn rate, number of full-time and part-time TNVS drivers, peak and offpeak hours, number of bookings, and others.

The LTFRB will review the number or the cap every three months.

Board Member Aileen Lourdes A. Lizada previously said they aimed to put a cap to also avoid the increasing number of vehicles on the roads.

The cap would take effect on Feb. 3, and acceptance of applications for franchise can then resume.

The LTFRB last year ordered TNCs to stop the processing of applications while it set out to craft regulations on ride sharing. It held several technical working group (TWG) meetings with TNCs.

Uber Philippines (Uber Systems, Inc.) has yet to give a statement, but Grab Philippines (MyTAXI.PH, Inc.) head of public affairs Leo Emmanuel Gonzales said the cap is not enough, noting that around 75,000 to 80,000 vehicles are needed to cover demand.