LTFRB allows entry of new transport firms

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) has lifted the moratorium on the entry of transport network companies (TNCs) in the ride-hailing industry.

In a memorandum circular dated Nov. 12, said it decided to give other companies an opportunity to apply to invite healthy competition among TNCs in the transport network vehicle services (TNVS) market.

“In uniformly applying the existing policies of the board, while giving new entrants the opportunity to apply, thus, inviting healthy competition among the TNCs, the moratorium on the acceptance of application for accreditation as TNC is hereby lifted,” the LTFRB said.

LTFRB chairman Martin Delgra III and board members Joel Pernito and Sherwin Mylil Begyan signed the memorandum circular.

The transport regulator suspended the acceptance of new TNC applications on Aug. 10, 2018 after it received a “considerable number of applications.”

However, it has decided to lift the moratorium after observing that only one TNC, which it did not name, “has been dominating the market in terms of bookings and ridership” while other firms “appeared to be not operationally capable to assume the responsibilities as TNC.”

Applicants need to pay an accreditation fee of P30,000. Approved applications will last for two years and may be suspended if the TNC violates LTFRB policies.