LTFRB says 100k franchise for all TNC

The Land Transportation Franchising and Regulatory Board (LTFRB) retracted its earlier claim pertaining to the issuance of franchises for transport network vehicle service (TNVS) providers.

The regulator issued the latest statement after transport groups questioned such a move.

According to LTFRB Chairman Atty. Teofilo Guadiz III, the organization shall conduct public hearings with various stakeholders before it has a deliberation, in conjunction with contacting the Department of Transportation (DOTr) to come up with a corresponding standard.

Guadiz also said that the slots are both for two-wheel and four-wheeled vehicles from any TNC who are interested in getting a franchise.

Per the LTFRB chief, the agency has considered everything in granting slots for TNVS franchise in different regions — particularly in the Visayas and Mindanao — to ensure the benefit of commuters.

Aside from helping the country build a more stable public transportation service, the LTFRB expressed firm belief that opening franchise slots will create more jobs.

Prior to the clarification, LTFRB announced that the initial 100,000 franchises to be issued are for drivers under Grab Philippines. Such declaration came after the reported "investment pledge" from the aforementioned transport network company (TNC) that could possibly generate 500,000 more jobs in the country.

Relatedly, Grab Philippines Senior Director for Operations Ronald Roda earlier dispelled fears of a possible oversupply, saying that demand for a fresh supply of TNVS units in the country is enough.

He noted that commuters using ride-hailing apps have already breached the pre-pandemic level in December 2022.

Roda also said that in the Greater Metro Manila area alone, Grab daily bookings alone has far exceeded the existing supply of ride-hailing drivers. He said that the company served less than half of the passenger demand volume in December last year.

Photos from Land Transportation Franchising and Regulatory Board Facebook page, Grab

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