U-Hop is 3rd app-based transport service to get LTFRB nod

A homegrown brand has joined what remains a short list of government-approved app-based transport services.

The Land Transportation Franchising and Regulatory Board (LTFRB) on Friday granted accreditation to U-Hop Transportation Network Vehicle System Inc., making it the third transportation networking company (TNC) to be allowed to operate in the country, after Uber and Grab.

Last year, U-Hop’s application for accreditation hit a snag after the board pointed out that the company was offering a ride-sharing transportation model not covered by the regulations drawn up by the Department of Transportation and Communications (DOTC) for TNCs.

“What U-Hop did was that they changed their business model. Now it is similar to Uber and Grab. They’ve abandoned shuttle services with fixed routes and will now also use sedans,” LTFRB member Ariel Inton said in a phone interview with the Inquirer on Saturday.

But U-Hop offers a type of service currently not provided by the other TNCs: The use of vans under UPremiere, which allows for more passengers in one ride.

U-Hop also offers a lower booking fee, according to a company official. “Our rates are the lowest in the market today and we assure our members that it will be affordable and very competitive for the commuting public,” Michael Manalaysay, U-Hop vice president for corporate communications, said in a press statement.

Manalaysay added that U-Hop would have “a higher revenue-sharing rate” for partner operators who will provide the transportation network vehicles or TNVs, as they are classified by the LTFRB. Jaymee T. Gamil