LTFRB to raise vehicle unit cap after Uber, Grab complain about 47,000-limit
The Land Transportation Franchising and Regulatory Board (LTFRB) is eyeing to increase the number of transportation network vehicle services (TNVS) units amid rising passenger demand.
The Department of Transportation (DOTr) said it would create a team to evaluate the number of request bookings per day and the number of served and unserved rides of transportation network companies (TNCs) Uber and Grab.
The data gathered would be used to come up with a set number for the TNVS units, I-ACT spokesperson and LTFRB board member Aileen Lizada said.
The DOTr previously ordered the LTFRB to review certain provisions stated in LTFRB Memorandum Circular 2018-003 which limited the common supply base of TNVS units in the country to 45,700.
“The decision to review the number is based on the fact that there are some TNVS units subject to coding. There is a market for this kind of denomination,” Lizada said in a text message to reporters Monday.
“Tuloy po ang pag-process (The processing will continue) but the number is not pegged at 45,000. We are eyeing to increase the units,” she added.
The LTFRB said it would start accepting applications for new TNVS units on Feb. 5, 2018.
DOTr and LTFRB will start monitoring within the next few weeks the number of booking requests received by TNCs to include served and unserved requests as well as other factors affecting the supply of TNVS such as number coding, maintenance schedules, and working hours of drivers in order to determine an objective number for the common supply base which will likewise be based on the official list of accredited TNVS as submitted by TNCs such as Grab, Uber and U-Hop to LTFRB.
“We assure you that should there be adjustments in the common supply base as a result of the review, the decision would be based on the actual data from the different TNCs through DOTr study and consultations with the public at large,” the DOTr said in a statement.
Under LTFRB Memorandum Circular 2018-003, the common base of 45,700 TNVS units are broken down as follows:
Metro Manila — 45,000 TNVS units
Metro Cebu — 500 TNVS units
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. (PNA)