LTFRB limits cars under ride-hailing apps to 45,700
MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) has set the maximum number of cars operating ride-hailing applications like Grab and Uber at 45,700.
LTFRB board member Aileen Lizada shared LTFRB Memorandum Circular 2018-03 to reporters on Thursday, January 18. The MC would be published in the Philippine Star on Friday, January 19, and would take effect 15 days after publication.
"The Board decides to set a common supply base for Transport Network Vehicle Service (TNVS)," Memorandum Circular 2018-03 reads. Once the "common supply base" is filled, the TNVS drivers can switch to whatever company they please.
The area breakdown is as follows:
- Metro Manila - 45,000 units
- Metro Cebu - 500 units
- Pampanga - 200 units
The LTFRB computed these numbers based on data submitted by ride-hailing application companies, which the board formally refers to as Transport Network Companies (TNCs). (READ: Grab, Uber riders only a minority – LTFRB)
Responding to questions,, Lizada said that Grab Philippines has more or less 55,000 units, while Uber has around 70,000 units registered in their respective systems – both exceeding the cap.
Lizada said, however, that the actual number of TNVS units that ply the roads fluctuate, as the number of commuters who seek their services go up and down too.
She also said that "45-50%" of TNV drivers are "dual citizens" or drivers who switch between the two companies. (EXPLAINER: LTFRB requirements for Grab, Uber permits)
It is still unclear whether the new provision will lead to higher fares for hailing a car with the press of a button. Grab and Uber have been reached for comment but have yet to reply as of posting. Both said they will study the MC first before issuing a statement.
The memorandum circular is the latest release of the LTFRB in their attempt to regulate ride-hailing applications like Grab and Uber, after they were caught in a policy-making deadlock in July 2017. – Rappler.com