TNCs may no longer set fare rates and charges, only LTFRB —DOTr

The Land Transportation Franchising and Regulatory Board (LTFRB) has the full authority to regulate and determine the fare rates charged by transport network companies (TNCs).

According to the latest Department of Transportation (DOTr) order, an unsigned copy of which was obtained by GMA News Online, the LTFRB is empowered to “determine, prescribe and approve and periodically review and adjust, reasonable fares, rates and other related charges” by TNCs.

A DOTr official said a signed  copy of department order will be released to the media. “Baka tomorrow. Wala kasing pasok ngayon. Hinihintay ko na malagyan ng barcode and stamp,” she said.

“The fare for the Transport Network Vehicle Services (TNVS) shall be determined by the LTFRB, after public hearing or in consultation with the TNCs and TNVS,” the order read.

TNCs provide pre-arranged transportation services using digital platform, while TNVS refers to the TNC-accredited private vehicle owner.

In a separate statement on Tuesday, the DOTr said the new department order amends and supersedes DO No. 2015-011, which allowed TNCs to set their own fares subject to oversight by the LTFRB.

“Hindi naman yata tama ‘yun. You can’t engage in the business of public transportation and determine your own fares, your own rules,” Transportation Secretary Arthur Tugade said

“Naiintindihan natin na mayroon silang negosyong pino-protektahan, ngunit responsibilidad din ng estado na protektahan ang kapakanan ng mga commuters.”

The DOTr gave LTFRB  total authority to regulate and supervise TNCs and their TNVS partners under the new order.

As mandated by law, the LTFRB was tasked to regulate and monitor the compliance of TNCs and TNVS with policies, laws, and regulations. It is primarily in charge of issuing franchises, setting routes, setting operating conditions, and imposing fines, suspensions, and cancellations when necessary.

The LTFRB assured TNCs and the riding public that public hearings and consultations will be conducted before fares and rates are adjusted and determined.

“Ayaw na nating maulit ‘yung nangyari noong mga nakaraang taon kung saan sila [TNCs] lamang ang nagdidikta sa presyo ng kanilang pasaheng sinisingil. Ayaw na rin natin maulit yung sobra-sobrang surge sa pricing lalo na kapag peak hours. Kawawa naman commuters natin na walang laban,” LTFRB Chairman Martin Delgra III said.

The DO acknowledges the established roles of TNCs and TNVS in providing transport services to the public.

DOTr Undersecretary for Road Transport and Infrastructure Tim Orbos emphasized that state regulation is necessary in order to ensure that the interests of all parties, most especially the riding public, are protected.

“Ibang usapan na kapag may buhay na nakasalalay sa negosyo mo. Itama natin yung mga maling nakasanayan. We will regulate to ensure that our commuters will be safe and protected. Ayaw namin na may madedehado,” Orbos said. —VDS, GMA News