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DOTC forms classification for Uber, other app-based transport services
By TRISHA MACAS, GMA News
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(Updated 6:34 p.m.) The Department of Transportation and Communicatons created a new classification to allow app-based public utility vehicles and services to operate in the country.
In a statement on Monday, DOTC Secretary Jun Abaya said that the Transportation Network Vehicle Service (TNVS) classification will allow app-based services offered by Transportation Network Companies (TNC) to exist within regulatory framework.
With the new classification, a TNC is defined as an organization that provides "pre-arranged transportation services for compensation using an Internet-based technology application or a digital platform technology to connect passengers with drivers using their personal vehicles."
TNCs will then provide the public with online-enabled transportation services known as a TNVS to connect drivers with ride-seekers through an app.
"We view technological innovation as a driver for progress, especially in transportation where it can provide safer and more convenient commuting options to the public. App-based transport services help address the increasing demand for mobility spurred by rapid urbanization," Abaya said.
Requirements for TNVS vehicles
In recognizing app-based PUVs, the DOTC came up with certain standards for vehicle eligibility, such as requiring global positioning system (GPS) tracking and navigation devices to ensure convenient and safer services.
DOTC also stressed that only sedans, Asian Utility Vehicles (AUV), Sports Utility Vehicles (SUV), vans, or other similar vehicles with a maximum age limit of seven years will be allowed to operate.
Drivers must be screened and accredited by the TNCs and registered with the Land Transportation Franchising and Regulatory Board to promote passenger safety.
Operators will be required to obtain a Certificate of Public Convenience (CPC) for every vehicle to ensure accountability.
"Many people appreciate the safe and convenient services offered by the TNVS category. We want this to motivate other public utility vehicle operators to modernize, upgrade, and innovate their services for the benefit of the public," Abaya added.
Operators welcome move
Last year, the LTFRB went after Uber and other ride-sharing vehicles after the agency ruled that such services need to get franchises from the government.
DOTC is also creating a new classification for Premium Taxis, which are supposed to have GPS and navigation tools, an online booking option, and on-board payment options.
The DOTC has also created the Airport Bus category. Buses under this category must run on clean alternative fuel, have CCTV cameras, GPS, and free Wi-Fi. Airport buses must also have low floor heights and adequate luggage space.
A new category, the Bus Rapid Transit, has also been created although BRT lines in Manila and Cebu are pending either approval or completion. — with a report by Steve Dailisan/NB/KBK/JDS, GMA News
In a statement on Monday, DOTC Secretary Jun Abaya said that the Transportation Network Vehicle Service (TNVS) classification will allow app-based services offered by Transportation Network Companies (TNC) to exist within regulatory framework.
With the new classification, a TNC is defined as an organization that provides "pre-arranged transportation services for compensation using an Internet-based technology application or a digital platform technology to connect passengers with drivers using their personal vehicles."
TNCs will then provide the public with online-enabled transportation services known as a TNVS to connect drivers with ride-seekers through an app.
"We view technological innovation as a driver for progress, especially in transportation where it can provide safer and more convenient commuting options to the public. App-based transport services help address the increasing demand for mobility spurred by rapid urbanization," Abaya said.
Requirements for TNVS vehicles
In recognizing app-based PUVs, the DOTC came up with certain standards for vehicle eligibility, such as requiring global positioning system (GPS) tracking and navigation devices to ensure convenient and safer services.
DOTC also stressed that only sedans, Asian Utility Vehicles (AUV), Sports Utility Vehicles (SUV), vans, or other similar vehicles with a maximum age limit of seven years will be allowed to operate.
Drivers must be screened and accredited by the TNCs and registered with the Land Transportation Franchising and Regulatory Board to promote passenger safety.
Operators will be required to obtain a Certificate of Public Convenience (CPC) for every vehicle to ensure accountability.
"Many people appreciate the safe and convenient services offered by the TNVS category. We want this to motivate other public utility vehicle operators to modernize, upgrade, and innovate their services for the benefit of the public," Abaya added.
Operators welcome move
LTFRB Executive Director Roberto Cabrera said they will have to require each Transport Network Company to submit their existing formula to create a benchmark of fares.
Most TNCs usually double or triple the fare depending on demand.
“Aalamin naming kung paano nila kinukuha ang rates nila. I’m sure some kind of regulation would be inputed doon para magfall sila under LTFRB,” Cabrera said.
Meanwhile, TNVS sperators welcome the development, with most of the key players in the growing app-based transport service industry present during a press briefing at the DOTC office on Monday.
Without disclosing the number of units they operate, one Transport Network Company said they have seven bookings per second during peak hours.
Natasha Bautista, assistant manager for Grab Car and Grab Taxi explains convenience is the primary reason for the increasing demand for app-based taxis.
The pre-arranged transportation services make it easy for drivers to connect with ride seekers online and a passenger can either pay cash or through a credit card.
Last year, the LTFRB went after Uber and other ride-sharing vehicles after the agency ruled that such services need to get franchises from the government.
DOTC is also creating a new classification for Premium Taxis, which are supposed to have GPS and navigation tools, an online booking option, and on-board payment options.
The DOTC has also created the Airport Bus category. Buses under this category must run on clean alternative fuel, have CCTV cameras, GPS, and free Wi-Fi. Airport buses must also have low floor heights and adequate luggage space.
A new category, the Bus Rapid Transit, has also been created although BRT lines in Manila and Cebu are pending either approval or completion. — with a report by Steve Dailisan/NB/KBK/JDS, GMA News
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