Cap on TNVS units due to ‘dual citizen’ practice of drivers —LTFRB

The practice of some drivers of serving for both Grab and Uber prompted the Land Transportation Franchising and Regulatory Board (LTFRB) to put a common supply base or a limit to the number of transport network vehicle services (TNVS) units plying the roads nationwide.

"More, the idea of a common supply base came from the current practice of TNVs operators and/or drivers who are accredited by more than one TNC (transport network company) and thus became what they call 'dual citizens,'" LTFRB Chairman Martin Delgra said in a statement.

LTFRB Board Member Aileen Lizada earlier said that of the total 125,000 TNVS units - 55,000 for Grab and 77,000 for Uber -around 45 to 50 percent are "dual citizens" and not all are active.

On Thursday, the LTFRB issued Memorandum Circular (MC) 2018-03, wherein the agency has set a 45,700 common supply base for TNVS.

"The ceiling of 45,000 units was determined from the 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," Delgra said.

"The MC setting a limit on the number of TNVs was arrived after judicious and careful deliberation by the Board following numerous TWG (technical working group) meetings with TNCs during which relevant data were discussed and subsequent informal consultations with TNCs," he added.

The LTFRB chair also said the agency will review the policy every three months after it becomes effective on February 3 as the board is "mindful that the demand varies from time to time."

"The policy on a common supply base for TNVs was envisioned to create a distinct denomination for this type of public transport service and not defined by the individual business models of the TNCs, thus giving the Board a more focused regulatory function on such service," Delgra said.

"In fact, one TNC was of the position that the TNVs and drivers database it has developed cannot be shared with other TNCs nor disclosed to the public; such a position is contrary to existing regulatory policy of the board. In fact, anyone can verify with the Board on details of TNVs which have valid franchises," he added.

With the new policy, the LTFRB chair said the current and several other TNCs who have expressed interest to provide this type of service, are now free to get the supply from the common supply base for their respective network unbridled by any preference over any TNC.

"On the part of the TNVs operators, they are to file their application for CPCs (Certificate of Public Convenience) on their own as TNVS and after getting the required CPCs can now apply for accreditation with any TNC or conversely, TNCs duly accredited by the Board may take initiative to accredit the needed number of TNVs in their system," Delgra said.

"Please note that the number of drivers is differentiated from the number of TNVs, the latter being required to get a franchise from the Board. It is not uncommon that one TNVS, especially those under utilized, may have more than one driver," he added. —ALG, GMA News