Franchise seekers for app-using cars wait till March

The Land Transportation Franchising and Regulatory Board (LTFRB) will start receiving on March 5 new franchise applications for those who want to become Uber, Grab or U-Hop drivers, as it also reviews the limit it recently set on the number of transport network vehicle services (TNVS) units that can be allowed to operate.

Originally, the LTFRB was set to accept applications on Feb. 5.

But Transportation Secretary Arthur Tugade recently ordered a review of the common supply base for the ride-hailing industry after app-based drivers and transport network companies (TNCs) expressed concern that the cap may not be able to address public demand.

The LTFRB earlier issued a memorandum circular limiting to 45,000 the number of authorized TNVS in Metro Manila, 500 in Cebu, and 200 in Pampanga.

But Grab Philippines country head Brian Cu said allowing as many as 75,000 would be a good start, based on his company’s data.

According to LTFRB Chair Martin Delgra III, moving the period for franchise applications to next month would give the agency more time to review the common supply base that the Department of Transportation earlier said may go up.

Based on LTFRB records, there are currently over 13,000 TNVS units accredited with Uber, Grab and U-Hop. These have either been issued a provisional authority or certificate of public convenience, or have pending applications with the board. Some of them, however, may be operating in violation of the LTFRB order limiting each operator to a maximum of three vehicles.

At 5 p.m. today, drivers under the One Goal 1 Voice coalition will gather in Quezon City and Cebu to call on transport officials to finally resolve issues in the ride-hailing industry.