In the Know: Transportation network companies

Transport services, such as Uber, Grabcar, Easy Taxi and Tripda, use mobile applications to connect passengers with drivers.

These companies have been under government scrutiny and have met resistance from taxi operators, but last month, after a series of hearings, the Department of Transportation and Communications (DOTC) issued an order allowing smartphone ride-sharing applications to operate legally in the Philippines.

The order outlined the new classifications for public transport, which now include the online-enabled transportation network vehicle service (TNVS).

Borrowing from the California Public Utilities Commission, the DOTC order stated that “organization, whether a corporation, partnership, sole proprietor or other form, that provides prearranged transportation services for compensation using online-enabled application or platform technology to connect passengers with drivers using their personal vehicles,” will be referred to as transportation network companies (TNCs).

The DOTC is imposing certain standards for vehicle eligibility, such as the requirement of global positioning system tracking and navigation devices for convenient and safer services.

In addition, only sedans, Asian utility vehicles, SUVs, vans or other similar vehicles will be accredited under the new classification.

Transportation Secretary Joseph Abaya said the move would offer better services to compel the traditional taxi cabs to “modernize and compete.”

But, Jesus Suntay, president of the Philippine National Taxi Operators Association, said it would ultimately hurt their business.

Suntay said the transit application platforms have an unfair advantage over “regular” cabs since the former do not operate their own cars.

He said services like Uber, which provides a platform for a passenger to link up with a private car driver, also benefit commuters because their fares are not regulated unlike regular cabs.–Inquirer Research

Sources: Inquirer Archives