Ride-sharing services providers under transport network companies (TNCs) Grab and Uber will be limited to a fleet of not more than three vehicles, Land Transportation and Franchising Regulatory Board (LFTRB) chair Martin Delgra told senators on Wednesday.
At a Senate briefing on the Department of Transportation budget, Delgra told Sen. Grace Poe that the LTFRB would issue a memorandum circular on this new requirement in “moving forward to solve this issue” on regulating the Transport Network Vehicle Service (TNVS).
“We have to go back to the original concept of ride-sharing. We cannot allow that there are TNVS operators operating more than 20 or 30 units,” he told Poe who asked him whether the LTFRB would limit the number of vehicles to be owned by TNVS operators.
Asked by Poe what would happen to operators with 10 or more units, Delgra replied: “We know we cannot simply drop them.”
He said he was aware that a large number of TNVS operators had gone to the extent of borrowing money from banks to “get a car so they would be able to put it in Uber or Grab.”
According to Delgra, there will be a “transition period” for those who will be affected by the new requirement and they will be offered options.
“Considering the fact that they are actually maintaining a fleet already; they own 20 units under one name [so] they can go [into] taxi service. Second, they can also go into [the] shuttle service if they want. And third, they can also go into tourist transport,” Delgra said.
The LTFRB earlier said it would come out this month with new regulations governing the app-based transport industry such as extending the validity of franchise given to drivers.
Uber has 66,000 vehicles while Grab has over 52,000. Of these, however, only more than 3,700 are licensed to operate by the LTFRB.