LTFRB: Only up to 3 vehicles allowed per app-using operator

Operators of app-based transport services can own only up to three vehicles each, according to a new rule approved by the Land Transportation Franchising and Regulatory Board (LTFRB).

The limit was set under Memorandum Circular No. 2017-032, which the board approved on Nov. 29 and published on Saturday.

The memo spells out the implementing guidelines in the transition period before the board allows transport network companies (TNCs) like Uber and Grab to accept new vehicles into their systems.

A moratorium on the acceptance of transport network vehicle services (TNVS) has been in effect since July.

It was imposed as the board was still fine-tuning regulations and ironing out issues with the TNCs, particularly regarding pricing, drivers’ accountability and passenger security.

According to the memo, each operator is allowed to have a maximum of three cars under his or her franchise.

Applicants who are spouses are also limited to just three cars “regardless (of whether) they are holders of separate franchises” or certificates of public convenience.

In a Senate hearing in September, LTFRB chair Martin Delgra III reported that some operators had been found to have up to 30 cars each under their name.

Having fleets of such size ran counter to the transport network industry’s original concept of “ride-sharing,” and also contributed to road congestion in Metro Manila, he said.

The LTFRB said affected operators are given 90 days from the order’s effectivity “to drop and substitute their authorized units with compliant units.”

If they have excess vehicles, they can still apply to have them used as regular taxi cabs, tourist transport or shuttle service, the board said.