Draft LTFRB order: Uber cars, etc., must apply for franchise

Just like public transports, private vehicles will have to secure a franchise from the government in order to operate as a partner of Uber and similar services that allow passengers to hire drivers through mobile applications.

This is according to one of the provisions in the draft order released by the Land Transportation Franchising and Regulatory Board (LTFRB), which has conducted a series of debates and hearings on whether Uber partners should be considered public or private vehicles.

The order is still open to amendments and is one of the documents being fine-tuned by the LTFRB concerning an issue that became contentious last year when taxi operators complained that Uber vehicles were being run practically like cabs and competing with them despite their lack of the proper franchise.

In the draft order posted on its website on Monday, the LTFRB pushed for the creation of a public transport category called the “Transport Network Vehicle Services” (TNVS).

Also part of the proposed regulations is the accreditation of Transport Network Companies (TNCs), which also include GrabTaxi, Tripid, or similar online services that, for a fee, connect drivers with passengers requesting a ride.

In effect, TNCs must seek accreditation from the LTFRB. And to be a partner driver of a TNC, the driver or vehicle owner must secure a TNVS franchise from the board.

“This department is supportive of new approaches to addressing transportation inadequacies,” the LTFRB order read. “Our aim is to encourage the use of even more technologies and innovations across all forms of public land transport.”

Keeping up with technology

“Nonetheless, government regulation is a must where public services are concerned. Regulation is a must for public safety and order. This is not only a requirement of law; it is meant to protect the public. We are aware that regulations must keep up with fast-paced technological innovations, and one way to do that is to amend some policies which may no longer be responsive to today’s needs,” it added.

The draft order is one of the policy papers that the LTFRB has been fine-tuning since Tuesday in consultation with TNCs, taxi operators and commuter groups.

It seeks the amendment of Order No. 97-1097 of the Department of Transportation and Communications, which classifies public transport conveyances for franchising. The change basically calls for an additional provision on the TNVS.

Not older than 3 yrs old

Some of the proposed requirements unique to the TNVS are as follows: Vehicles covered by the franchise must not be older than three years old; they should be regulated by accredited TNCs; and their operations should be exclusively prearranged by the TNCs’ online applications.

The LTFRB is also considering asking the Land Transportation Office to issue guidelines reclassifying cars operating as TNVS from private to “for-hire.”