MANILA, July 26 — The Metropolitan Manila Development Authority (MMDA) stressed transport network vehicle service (TNVS) without permits should be kept off the streets.
MMDA Chairman Danilo Lim, in a press conference Wednesday, said he supports the proposal to set a cap on the number of TNVS units of transport network companies (TNCs) Uber and Grab.
“If you’re colorum, you shouldn’t be on the road,” the MMDA chief said.
Lim explained that the proliferation of ‘colorum’ TNVS has contributed to congestion in major roads and thoroughfares in Metro Manila such as EDSA.
He said a total of 417,000 vehicles were sold last year while car sales for this year are projected to reach by 450,000. “Let’s say 30% of those cars are in Metro Manila. But the capacity of EDSA is not expanding,” the MMDA chief stated.
Based on the numbers given by Uber and Grab, there are 56,000 activated TNVS drivers, including the 3,000 with approved franchises. About 40,000 vehicles are plying the streets without certificates of public convenience (CPC) or provisional authority (PA).
The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a memorandum last year suspending the applications for new TNVS pending review of its existing policies as the number of franchise applicants ballooned at that time.
It has created a Technical Working Group that will address various concerns of TNCs such as accreditation and pending applications, accountability and dynamic pricing scheme.
Department of Transportation (DOTr) Secretary Arthur Tugade said the government is planning to put a cap on ride-sharing drivers applying for franchise once compliance among those who want to operate under the scheme is already established.
Tugade said the measure is being studied as the increase in applicants and users of TNC applications is not proportional to the increase of those who are registering.
“We wanted to have compliance. Once we have the compliance then we can establish a cap,” the transportation secretary said in a Malacanang press briefing recently.
“So, as we gather the data, we are studying the possibility of putting a cap on how many TNCs and TNVS are allowed to operate on roads,” he added.