Grab to deactivate at least 8K TNVS by June 10

Ride-hailing service Grab Philippines will deactivate at least 8,000 transport network vehicle services (TNVS) by June 10 for failing to submit proof of provisional authority to operate from the Land Transportation Franchising and Regulatory Board (LTFRB).

“This will reduce the number of vehicles servicing our commuting public, thus inconveniencing many Filipinos,” Grab president Brian Cu said in an emailed statement late Monday.

“We hope that this inconvenience will be temporary, as we anticipate new drivers—even those from the 8,000—to take advantage of the 10,000 new slots for application starting June 10,” he added.

Last December, LTFRB opened the application for new slots and the drivers who applied have only until June 7 to complete their applications.

New drivers must apply immediately as the deactivation of the 8,000 TNVS would make the situation worse for the industry in light of the current lack of drivers, according to Grab.

“At the end of the day, many Filipinos will suffer from this painful step, both the drivers and the passengers. We would want to avoid this from happening, but we are bound to comply with our regulator,” Cu said.

GMA News has contacted Grab and LTFRB on how this would impact on the ride-hailing service’s revenue and operations, as well as on commuters.

Grab Philippines last year urged the LTFRB to raise the cap on TNVS to at least 75,000 to accommodate all active drivers in the country.

Under Memorandum Circular 2018-03, the LTFRB has ordered a cap of 45,700 TNVS units nationwide—45,000 in Metro Manila, 500 in Metro Cebu, and 200 in Pampanga.

Grab in September 2018 said it had 35,000 active drivers at any given time, serving some 600,000 bookings per day, as it appealed for LTFRB to raise the cap.

For its part, the LTFRB started accepting applications for new TNVS not included on the “master list.” —Anna Felicia Bajo and Jon Viktor Cabuenas/VDS, GMA News