LTFRB warns transport networks against franchise breaches


The Land Transportation Franchising and Regulatory Board (LTFRB) on Wednesday reminded all transport network companies (TNCs) and transport network vehicle services (TNVS) to comply with the agency’s Memorandum Circulars (MCs) or face penalties.

“We are encouraging all TNCs and TNVS to comply with the Board’s MCs or face apprehension and penalized for operating without the legitimate franchise to transport passengers,” LTFRB chairman Atty. Winston Ginez said.

Ginez said TNCs and TNVS are to strictly comply with the Board’s MCs issued in May, pointing out that all were previously published in newspapers of general circulation and posted on LTFRB’s website.

The four different MCs are:
• Memorandum Circular 2015-015—‘Rules and Regulations to Govern the Accreditation of Transportation Network Companies (TNCs)’

• Memorandum Circular 2015-016—‘Terms and Conditions of Certificate of Transportation Network Company Accreditation’

• Memorandum Circular 2015-017—‘Implementing Guidelines on the Acceptance of Applications for a Certificate of Public Convenience to Operate a Transportation Network Vehicle (TNV) Service’

• Memorandum Circular 2015-018 – ‘Terms and Conditions of a Certificate of Public Convenience to Operate a Transportation Network Vehicle Service

Non-compliance with the circulars are subject to a fine of P200,000 per vehicle and three months’ impoundment as stipulated in the DOTC-LTFRB-LTO Joint Administrative Order No. 2014-01 entitled “Revised Schedule of Fines and Penalties for Violations of Laws, Rules and Regulations Governing Land Transportation.”

More importantly, TNCs such as Uber and GrabCar offering online-enabled transport services, and TNVS, which are partner vehicles of TNCs, must apply for accreditation with LTFRB.

Of the current TNCs/TNVS now offering the services, only GrabCar has so far complied with the accreditation process.

Ride-booking service providers
Earlier this year, Uber commended the LTFRB and the Department of Transportation and Communications (DOTC) in taking the initiative to coordinate with Uber and other mobile app-based ride-booking service providers in updating the country’s transport regulations.

An Uber executive said the Board and DOTC had talks with Uber and several of Uber’s competitors to understand what’s coming next and to evaluate regulation to catch up with innovation.

To date, Uber has yet to apply and complete the requirements to full accreditation of the LTFRB as a TNC.

“The Board is open to embracing new technology, [and]they want to ensure the public’s safety and convenience by accreditation of qualified TNCs and issuance of franchises to TNVS operators that meet LTFRB’s legal requirements,” Ginez said.


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