LTFRB Sets Limit to Number of TNVS Units, Conditions for Hatchback Units

In its latest Memorandum Circular (MC) numbered 2018-005 which it filed yesterday, February 12, the Land Transportation Franchising and Regulatory Board (LTFRB) has set the common supply base for the number of Transport Network Vehicle Service (TNVS) units operating within Metro Manila, Metro Cebu, and Pampanga, as well as imposed certain conditions on the use of hatchbacks as TNVS vehicles and will begin processing the applications  of prospective TNVS partners.

According to the LTFRB, based on the result of the audit performed by independent auditors on the pertinent data of Transport Network Companies (TNCs) like Grab, Uber, and UHOP up to the period of July 2017, the TNCs have a total of 59,020 accredited peers "most of whom were not able  to file their respective applications for a Certificate of Public Convenience (CPC)" with the agency due to the moratorium on the acceptance of TNVS applications.

 In response, the LTFRB said it is lifting the moratorium on the acceptance of applications for the issuance of the CPC to operate as TNVS partners, with the processing for the applications of TNVS units starting on March 5.

As for the number of accredited TNVS units, the LTFRB is limiting them effective on February 28 as follows:

Metro Manila - 65,000 units;

Metro Cebu - 1,500 units; and

Pampanga - 250 units

With a common supply base of 66,750 units, the LTFRB believes TNCs will now be able to serve 75 percent of their passenger bookings. Previously, the LTFRB wanted to limit the number of TNVS units to 45,00 for Metro Manila, 500 for Metro Cebu, and 200 units for Pampanga for a total of 45,700--a difference of 21,050 units.

The LTFRB has also set the following conditions for TNVS partners on the use of hatchback models:

  1. Hatchback units will only be accepted subject to a transition period of only three years "in order for the peers to recoup their investment,";
  2. Hatchback units will only be limited to operate within Metro Manila--thereby prohibiting the units from operating in Laguna, Bulacan, Rizal, and Cavite; and 
  3. Hatchback units will have lower rates subject to the approval of the agency.
Lastly, TNVS applicants are allowed to replace or drop and substitute their accredited vehicles with year models 2012 and earlier "within 90 days from the effectivity of the Circular.

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