LTFRB denies refusing U-Hop’s TNC application

MANILA, Philippines – A transport official on Sunday clarified the reports that the Land Transportation Franchising and Regulatory Board (LTFRB) denied the application of Filipino-developed app-based shuttle service U-Hop as a Transport Network Company (TNC) last Friday according to reports.

“I read reports saying the board denied U-Hop’s application. That’s not true. We at the board did not agree on denying it,” LTFRB board member Ariel Inton said in a phone interview with state news.

Inton said the board issued a memorandum to the Department of Transportation and Communications (DOTC) recommending for a study or formulation of policy for TNCs on a Shuttle Service Mode. He clarified that LTFRB did not exactly deny the application of U-Hop as a TNC but set aside its application to recommended it to other possible denominations.

“As far as I’m concerned, it’s not a denial. We signed a letter recommending DOTC to open a new denomination for app-based shuttle service,” Inton said.

U-Hop, established last July, sends shuttle services that can seat up to seven people at a time instead of one car to every passenger.

The company applied for a accreditation as a TNC to be able to operate legally and not be categorized as a “colorum” vehicle last August. However, its accreditation was set aside since a TNC qualification requires that a vehicle should not carry passengers under a fixed route. Vehicles applying as TNCs are also prohibited from carrying more than seven passengers.

Inton said that U-Hop declared that it has a fixed route and carries more than seven passengers that’s why its business model is currently not allowed under LTFRB’s existing department order.

”I want to get this clarified because reports put U-Hop in a bad light. The board is not associated with U-Hop in any way but we cannot say that we denied their application because we did not,” Inton said.

Reports that the LTFRB denied the application of U-Hop as a TNC surfaced after the LTFRB chair’s Twitter account posted a photo of a document with tweet indicating “Breaking News: LTFRB denies U-HOP's application as Transportation Network Company (TNC)” which caused confusion as the document only proposed creating a new transport service category for U-Hop.

Breaking News: LTFRB denies U-HOP's application as Transportation Network Company (TNC). pic.twitter.com/gMNwBlzPPq

— LTFRB_CHAIRMAN (@LTFRB_Chairman) October 23, 2015