LTFRB orders U-HOP to halt activation of TNVS applications

The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered ride-sharing firm U-HOP to halt the activation of its transport network vehicle services (TNVS) applicants. (Photo: U-Hop.com/Facebook)

MANILA — The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered ride-sharing firm U-HOP to halt the activation of its transport network vehicle services (TNVS) applicants.

The Board likewise directed the firm not to use the LTFRB logo on their Certificates of Accreditation without its permission.

In a statement, the LTFRB said it has not yet lifted its suspension on the acceptance and activation of TNVS applications issued last July pending the resolution of the Technical Working Group (TWG) on the transportation network companies (TNCs).

LTFRB is set to issue a show cause order to U-HOP explaining why they continue to activate new drivers into their system despite the existing ban, according to board member and spokesperson Aileen Lizada.

Lizada said the board was able to take hold of certificates of accreditation issued to two different U-HOP drivers who used the same vehicle.

For its part, U-HOP clarified that it has not activated anyone who is not part of its initial list of TNVS applicants submitted to the LTFRB.

“We would like to clarify that we have not activated anyone who is not part of the 5,000 initial list and allocation we submitted to LTFRB. Out of the 5,000, we only activated less than 300 and 56 in Cebu due to the clamor of the public for affordable rides,” the firm said in a statement posted on its official Facebook page.

U-HOP said they have received their accreditation last March and stopped their activation after the suspension order was released in July.

“When U-HOP received the TNC Accreditation last March 2016, we were only allowed to run for four months and immediately stopped after the July suspension. We incurred considerable losses but we never complained. We followed the order even if it almost got us to the ground,” U-HOP said.

“During the TNC-TWG, we asked permission to allow us to run 5,000 units, to be able to survive the competition and provide decent service to our users. We got a verbal approval,” they added.

U-HOP will remove the logo in all their future certification as well as on the vehicle markings in compliance with the LTFRB order.

It will likewise file a Motion for Reconsideration (MR) and clarify the matter on the activation of new applicants to the LTFRB.

The Board has directed TNCs including Uber and Grab last July 11 as it reviews guidelines on the TNVS accreditation.

The LTFRB has earlier said it is eyeing to extend the validity of the franchises of the TNCs from one year to three years. It also plans to issue IDs and stickers to TNVS drivers who have franchises and would require the drivers to attend the Driver’s Academy.