LTFRB limits TNVS for MM, Cebu & Pampanga

 

By Rose de la Cruz

 

 

The Land Transportation Franchising and Regulatory Board has limited the number of operating transport network vehicle service (TNVS)—or more known as Uber and Grab—from over 125,000 to 45,000 which would mean tighter supply of these preferred comfortable and convenient transportation for the riding public.

 

This is why newly-installed Kabayan Partylist Rep. Ciriaco Calalang, in a statement, asked the LTFRB to “rethink your Memorandum Circular 2018-003 as this would redound to the disadvantage of the riding public.”

 

The riding public will be on the losing end of your move to set a common supply base for the number of TNVS units on the road because with fewer units available, TNC fares charged will go up. Worse, thousands of TNVS drivers will be deprived of their livelihood. The common supply base decision has the effect of being anti-entrepreneur, when the country needs more entrepreneurs.

 

 

He suggested “a more prudent move of setting a minimum number of units that transport network companies (TNCs) can use in plying the roads as a balance.”

 

The LTFRB does not make the business decisions for the TNCs, but public interest is served by ensuring there are enough TNVS on the road. This would serve TNCs and TNVS notice that they cannot manipulate supply for price gouging purposes, he asserted.

 

“It should not be the business of the LTFRB to make or unreasonably impinge upon daily business decisions of TNCs like Uber and Grab. Consumer protection and public are what LTFRB must focus its decisions on,” he declared.

 

By June 2018, he said, the LTFRB should: a) open new PUJ routes; b) create shorter PUJ routes and c) establish permanent routes for point-to-point passenger PUBs.

 

New PUJ routes and shorter PUJ routes will make for more profitable operations for the jeepneys while also reducing vehicle volume along major roads. More P2P buses will address jeepney supply shortages because of the PUV modernization program, Calalang said.

 

According to LTFRB Memorandum Circular No. 2018-03 released Thursday, the number of cars for Grab, which has about 55,000 units and Uber, with about 70,000 units, will be reduced to only 45,000.

 

Resigned LTFRB spokesperson Aileen Lizada said, however, 45 to 50 percent of the registered units are "dual citizens," or those that switch between Grab and Uber.

 

The memorandum, which will take effect on Feb. 3.

 

For Cebu, the TNVS will be limited to 500 and in Pampanga, 200.

 

"The numbers we arrived at were based on the data given to us by both TNCs, considering yung dual citizenship, part time, full time, number of bookings, as well as yung mga churning rate," Lizada told CNN Philippines.

 

She added the data is reviewed every three months to promptly reflect those who do not operate anymore.

 

"We have steered away from the exclusivity ng mga TNVS. So if you are granted a franchise of a TNVS, pwede ho kaying magpa-accredit sa lahat," Lizada said.

 

The memorandum added the agency will only accept vehicles that are three years old from the date of manufacture, with a maximum age limit of seven years.

 

The age limit, however, will not be applied to vehicles that will pass the Motor Vehicle Inspection System.

The LTFRB earlier said they also plan to remove the accreditation of small or compact cars and hatchbacks as part of its safety regulations.

 

 

 

 

 

 

 

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