LTFRB still looking into opening more ride-hailing slots as heavy traffic returns
MANILA, Philippines — The Land Transportation Franchising and Regulatory Board is still studying whether or not to open more units for Transport Network Vehicle Service drivers with pre-pandemic traffic slowly building up in the Metro's thoroughfares once more.
This was confirmed to Philstar.com in a phone call by LTFRB technical division chief Joel Bolano, who said that the study still has no clear timeline after the turnover in the LTFRB's administration.
Of the over 7,000 slots opened up for TNVS units in the coronavirus pandemic, Bolano said only some 2,000 were taken by the transport network companies. The remaining slots did not receive any applications and were eventually closed.
"There were a lot of slots that weren't filled up, and others that were appointed could not give their requirements, so they decided not to pursue their application anymore," he said in mixed Filipino and English.
"The period for applications was already closed by the board, and we need another guidance if we will open the remaining ones...the new administration is currently studying if they will be re-opened or we will open up more."
Asked why applications weren't coming in, the LTFRB blamed compliance with requirements.
"That's the main reason...maybe others didn't because of the fuel prices, that's also possible," Bolano said. "We see that the [traffic] situation has already normalized, but we're also weighing the increase in fuel prices. We're trying to balance that with the opening of slots."
Sought for comment, The Passenger Forum convenor Primo Morillo told Philstar.com in an online exchange that the lack of units on the road was to blame for skyrocketing prices.
"What is clear is that surge charges apply when there is high demand and low supply of TNVS units. In our view, this is the main reason why TNVS rates are so expensive nowadays," he said.
"The solution lies on the desk of LTFRB officials. Will they allow more vehicles to be TNVS-accredited? When will they fill up the remaining unused TNVS slots?"
Bolano said that transport network companies like Grab Philippines are allowed to surge up to two times. He added that TNC players are still largely compliant with the fare matrix it had set.
The LTFRB earlier increased the flagdown rate of taxis and TNVS in September, but that was only by P5. That was after Grab asked for a P20 fare hike. At present, the minimum fare for ride-hailing services ranges from P45 to P55.
In a phone call with Philstar.com, Ronald Gustillo, convenor of digital advocacy group Digital Pinoys, said this fear of overpricing extends to Grab's acquisition of Move It.
"We know that the reason why two-wheeled ride-hailing services are patronized by the consumer is that it is by far much more affordable than using Grab," he said.
"What used to be a P200 to P250 fare for a 25-kilometer trip is now averaging P500 to P800. There was even a time that it would reach more than P1,000 because of surge pricing."
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