The Department of Transportation and Communication (DOTC) has created a new category to allow app-based public utility vehicles and services to operate in the Philippines.
According to Transportation Secretary Joseph Emilio Abaya, the new classification of public transport is in line with the agency’s “effort to modernize transportation services and usher in the conveniences offered by technological innovation.”
“We view technological innovation as a driver for progress, especially in transportation where it can provide safer and more convenient commuting options to the public. App-based transport services help address the increasing demand for mobility spurred by rapid urbanization,” Abaya said in a press statement.
He said a Transportation Network Vehicle Service (TNVS) classification has been created to allow app-based services offered by Transportation Network Companies (TNC) to exist within DOTC’s regulatory framework.
READ: LTFRB proposes bill to regulate Uber, online transpo services
The transport official said that under a new classification, “a TNC is defined as an organization that provides pre-arranged transportation services for compensation using an internet-based technology application or a digital platform technology to connect passengers with drivers using their personal vehicles.”
“TNCs will provide the public with online-enabled transportation services known as a TNVS, which will connect drivers with ride-seekers through an app,” he said.
Under the TNVS, certain standards for vehicle eligibility such as a global positioning system (GPS) tracking and navigation devices for convenient and safer services are required.
He said only sedans, Asian Utility Vehicles (AUV), Sports Utility Vehicles (SUV), vans, or other similar vehicles would be allowed.
A maximum age limit of seven (7) years will be enforced on the vehicles, he added.
According to him, operators will be required to obtain a Certificate of Public Convenience (CPC) for every vehicle to ensure accountability.
READ: Draft LTFRB order: Uber cars, etc., must apply for franchise
To promote passenger safety, he said, drivers must be screened and accredited by the TNCs and registered with the land Transportation Franchising and Regulatory Board (LTFRB.)
“Many people appreciate the safe and convenient services offered by the TNVS category. We want this to motivate other public utility vehicle operators to modernize, upgrade, and innovate their services for the benefit of the public,” he said.
Among the app-based vehicle services operating in the country include Easy Taxi, GrabTaxi and Uber.