With New TNCs, Will LTFRB Increase TNVS Cap of 65,000 Units for Metro Manila?

Since Uber was acquired by rival transport network company (TNC) Grab in Southeast Asia, the loss of the former has been felt by the riding public since its accredited drivers weren’t automatically absorbed by the latter, particularly in the Philippines. The influx of new TNCs in the form of newly-accredited Owto, Golag, and Hype has raised the concern that there may not be enough accredited vehicles to go around.

According to Grab Philippines boss Brian Cu, with the entry of the three new TNCs and a transport network vehicle service (TNVS) cap of 65,000 units for Metro Manila as set by the Land Transportation Franchising and Regulatory Board (LTFRB), this might crate a network deficit since there are not enough cars to go around.

In response, LTFRB member Atty. Aileen Lizada clarified that the board conducts a review every three months and a dialogue with the TNCs to get their feedback. Right now though, the board’s priority is to complete the accreditation of the incoming TNCs so that the agency can have a dialogue with all of them regarding their concerns

“We need to stress that this is a new denomination, everyone is working on the fly,” said Lizada. “It’s still too early to set rigid rules on a technology that is still being tested first by its newness vis-a-vis the owners, drivers, passengers, and competition.”

“We need to see the churning rate of all the TNCs, we need to see how many (drivers) have been blacklisted by the operators, how many are no longer running. These are the things that are unique to this denomination because they operate online voluntarily, they don’t operate 24/7. So if the pool (of TNVS drivers) will be lessened, we will replenish. As to whether we will increase the pool, that is a discussion to be considered by the board,” Lizada added.