Grab proposes hatchbacks be ‘permanently allowed’ to operate as TNVS 

PROTEST ACTION Deactivated hatchback drivers hold a rally earlier this month in front of the LTFRB office. INQUIRER file photo / NIÑO JESUS ORBETA

MANILA, Philippines — While thankful for the Department of Transportation’s (DOTr) order, ride-hailing firm Grab proposed on Friday that hatchback-type vehicles  be “permanently allowed” to operate as transport network vehicle service (TNVS).

Transport Secretary Arthur Tugade earlier ordered the Land Transportation Franchising and Regulatory Board (LTFRB) to implement its Memorandum Circular 2018-005, which allows accredited hatchback cars to operate as TNVS if they only operate during the transition period of three years, only in Metro Manila, and charge a lower fare.

READ: DOTr to LTFRB : Allow hatchbacks to operate as TNVS units

“We are grateful to Secretary Arthur Tugade for this directive. It shows his magnanimity and a deep sense of fairness for all those involved,” Grab Philippines President Brian Cu said in a statement.

“Consistent with the DOTr’s statement that hatchback TNVS units provide a more economical option to the public, we propose that hatchbacks be permanently allowed to operate as TNVS,” he added.

He also noted that Grab has been coordinating with the LTFRB and the DOTr “to resolve hatchback issues.”

Transport Undersecretary for Road Transport and Infrastructure Mark de Leon earlier said hatchback-type vehicles are “more fuel-efficient” and would “greatly benefit the commuting public.”

“We are giving the commuters their transport options. Kung gusto niya na mas mura ang biyahe niya, mag-hatchback siya,” De Leon said.

Meanwhile, the LTFRB said it has been implementing the memorandum circular and it would wait for the DOTr to amend its Department Order 2015-011 before it allows hatchback vehicles to operate as public transport units.

Grab said it will continue to work closely with regulators and policy makers to address remaining TNVS issues. Its next priority is to help their TNVS partners with their issues in securing bank conformity.

“We encourage the banking industry to help us create a strong foundation for micro-entrepreneurs such as TNVS, and be our partners to uplift the livelihood of our fellow Filipinos,” Cu said. /jpv