REDUCE FARES AND INCREASE PASSENGER CONVENIENCE BY INCREASING SUPPLY
illegal and “colorum” vans, buses, ride-sharing cars as passenger demand is very high. And that is where lots of apprehensions, driver harassment, corruption and extortion can come in.
Last week, there were two news reports in Business World about continuing LTFRB bureaucratism of transport network vehicle service (TNVS) or transportation network companies (TNC):
(1) “LTFRB junks order for Grab to reimburse passengers” (Sept. 5), and
(2) “LTFRB approves P2-perminute TNVS charge” (Sept. 6).
Report #1 is the agency taking back its previous order that Grab should reimburse future passengers but it should still pay the agency P10 million for “overcharging” its passengers and failure to inform the board of its P2-per minute charge.
Report #2 is the agency allowing the per minute charge and ordering TNVS to give detailed and unbundled breakdown of fares — flag down rate, per kilometer rate, travel time rate and surge price.
The P2-per minute charge is an important incentive for drivers to endure heavy traffic or flooded areas and pick up, bring passengers to their destinations.
In a deregulated environment, TNVS should be allowed to charge whatever amount as their per minute charge so long as passengers know their rates via online transactions. So a TNVS can charge P5, P10 per minute or higher – because it is fielding an SUV or a BMW or Benz to passengers who can afford.
I checked the LTFRB budget, the biggest item is on its “service” for issuing the Certificate of Public Convenience (CPC), granting of permits and establishment of routes.
One can interpret it as we taxpayers giving the LTFRB hundreds of millions of pesos yearly so that it can choose who among the entrepreneurs and businesses can expand and who should be choked. We are giving them lots of money so it can harass and even confiscate and impound private property that provide services to wary and harassed passengers but has no accreditation precisely because the agency has capped and limited the number of accredited vehicles to small numbers.
LTFRB bureaucratism seems to be doing the exact opposite of what government should do — to respect private property and allow market mechanism to respond to passengers’ rising and changing demand.