TNVS drivers won’t lose jobs as LTFRB raises supply cap

Transportation network vehicle services (TNVS) drivers are assured that they will not lose their jobs as the Land Transportation Franchising and Regulatory Board (LTFRB) increased the number of common supply base for vehicle units of transportation network companies (TNCs) to address rising passenger demand.

 (Pixabay photo)

MANILA — Transportation network vehicle services (TNVS) drivers are assured that they will not lose their jobs as the Land Transportation Franchising and Regulatory Board (LTFRB) increased the number of common supply base for vehicle units of transportation network companies (TNCs) to address rising passenger demand.

The Board has issued Monday a memorandum setting the supply cap of TNVS units to 66,750

.

Under LTFRB Memorandum Circular No. 2018-005, the common supply base are as follows:

Metro Manila – 65,000 TNVS units

Metro Cebu – 1,500 TNVS units

Pampanga – 250 TNVS units

“The TNCs will now be able to serve 75 percent of their passenger bookings. Dapat mas mabilis na ang serbisyo ninyo at wala nang cancellation (Your services should be more faster and not have any cancellations),” LTFRB Board Member Aileen Lizada said in a press conference.

The number of the common supply base was decided by the Board considering various factors such as unserved demand, number coding scheme and churning rate or the number of inactive drivers for the past few months and will be reviewed every three months.

The ridesharing companies welcomed the decision of the Board as it will enable them to efficiently deliver services to their passengers.

“The supply base will enable us to address our passenger demand. This assures us na walang drivers ang mawawalan ng trabaho (no drivers will lose their jobs), Grab Philippines Country Head Brian Cu said.

“On the number that they provided, we still need to assess the impact it will have on our reliability, but we’ll continue to work with LTFRB on the quarterly process,” according to Uber policy associate Irish Almeida.

The memorandum shall be effective on Feb. 28, 2018. 

Meanwhile, the LTFRB also ordered hatchback units to only operate within Metro Manila and charge lower fares to their riders.

The regulatory board will issue different plates and stickers for TNVS units for enforcement purposes.

The stickers will be released as soon as the Provisional Authority has been issued with the plates to be issued later.

There are 59,020 accredited TNVS units for both Uber and Grab whose Certificates of Public Convenience were not processed by the LTFRB due to the moratorium on applications last July 2017.

The application for the TNVS units will begin on March 5 with priority to be given to the master list of active drivers submitted by the ridesharing companies to the LTFRB.

Last January, the LTFRB has imposed the supply cap for TNVS units at 45,700 units.

However, Department of Transportation Secretary Arthur Tugade has ordered for its review and created a team to evaluate the number of request bookings per day and the number of served and unserved rides of TNCs.