LTFRB limits transportation network vehicle services

THE LAND TRANSPORTATION Franchising and Regulatory Board (LTFRB) has set a common supply base for transportation network vehicle services (TNVS) units which aims at creating a distinct denomination for the transport service that will facilitate regulation of the ridesharing industry.

The initiative was derived out of the current practice of TNVS drivers who are accredited by more than one transportation network company (TNC).

“The policy on a common supply base for TNVS was envisioned to create a distinct denomination for this type of public transport service and not defined by the individual business models of the TNCS, thus giving the Board a more focused regulatory function on such service,” LTFRB Chairman Martin Delgra III said.

“As it is now, the current TNCS and several other TNCS who have expressed interest to the Board to provide this type of service are now free to get the supply from the common supply base for their respective network unbridled by any preference over any TNC,” he added.

The LTFRB, in a recent memorandum, imposed a common base of 45,700 TNVS units nationwide which were broken down as follows: Metro Manila - 45,000 TNVS units; Metro Cebu 500 TNVS units; and Pampanga - 200 TNVS units.

The cap on TNVS units was determined from relevant data given by the leading TNCS, taking into consideration churning rate, percentage of full-time and part-time TNVS, peak and off-peak hours and average daily bookings, among others.

The LTFRB Board will review the policy three months after it becomes effective as demand varies from time to time. The common base will enable TNVS drivers to register under ridesharing companies that are accredited by the Board. All valid and existing certificates of public convenience (CPCS) to operate TNVS and those with pending applications are included in the common supply base.

The validity of existing CPCS to operate TNVS shall remain effective subject to the new terms and conditions as may be prescribed by the Board. Accredited TNCS should accept and process for accreditation only valid CPC holders.

For its part, Grab Philippines Country Head Brian Cu said LTFRB’S move would adversely affect the number of TNVS units that they are operating amid increasing demand from their passengers. The ridesharing firm needs around 70,000-80,000 units in order to replenish their supply of transport services to the commuters.

There are around 125,000 TNVS units in Metro Manila, according to the LTFRB. The new guidelines is effective staring February 3.