Transport regulator assures accreditation process will guarantee compliance of ride-sharing services

THE LAND Transportation Franchising and Regulatory Board (LTFRB) yesterday said its accreditation process would ensure “strict compliance” of online-based transport services to its rules and regulations, after a House of Representatives committee had pushed for the suspension of the Transportation department’s order accrediting them, due to “legal issues.”

In a statement yesterday, the LTFRB said its four memorandum circulars (MCs) issued last month “clearly state, among others, the process and legal documentary requirements for accreditation of TNCs (Transportation Network Companies) and what TNVS (Transportation Net- work Vehicle Service) operators needed in order to secure their franchises before they can start operating online-enabled transport services.”

These are MC 2015- 015 or Rules and Regulations to Govern the Accreditation of TNCs; MC 2015- 016 or Terms and Conditions of Certificate of TNC Accreditation; MC 2015- 017 or Implementing Guidelines on the Acceptance of Applications for a Certificate of Public Convenience to Operate a TNVS; and MC 2015018 or Terms and Conditions of a Certificate of Public Convenience to Operate a TNVS.

“[B]efore a TNVS or TNC…are given [ a] certificate to operate, they need to strictly comply with the Board’s rules and regulations, including going through a comprehensive screening process and background check of all TNC/ TNV drivers,” the statement said.

The agency pointed out that the drivers’ identification must be properly displayed in accredited vehicles, in response to concerns as also raised in the House of Rerpresentatives about the procedure to acquire franchises and the drivers’ “lack of liability” in case of traffic accidents.

“TNCs/TNVS must also submit legal documents showing they have the necessary insurance requirements to protect the riding public in the event of an accident. They are also required to issue electronic receipts to ensure they comply with tax revenue requirements,” the LTFRB statement also said.

Last week, The House committee on transportation said it plans to send a report by its own technical working group to the Transportation department so that the agency would reconsider its Department Order 2015- 011 signed May 8.

In that order, the department created the new classification TNVS — which covers TNCs including Uber, GrabTaxi, Easy Taxi, Tripda and Tripid. It also outlined the standards for allowed vehicles, such as the requirement of global positioning system tracking and navigation devices. Only sedans, Asian Utility Vehicles, Sport Utility Vehicles, vans, or similar vehicles will be allowed, and an age limit of seven years will be enforced.

“We are familiar and confident that we have the capability to protect public safety in the face of rapid technology change. While are tasked on adopting rules and regulations, we are open to seeking guidance from our Legislators in effectively regulating the transport industry,” LTFRB Chairman Winston M. Ginez said in the statement.