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Online transport like Uber must get franchise, says LTFRB

Online transport like Uber must get franchise, says LTFRB image

Text: Eric Tipan / Photos: Patrick Cardano | posted January 23, 2015 08:31

Initial draft order still open to amendments

The Land Transportation Franchising and Regulatory Board (LTFRB), after creating a new category called ‘Transport Network Vehicle Services’ (TNVS), which will classify online transport and car sharing services as Transport Network Companies (TNCs) conducted a workshop with reps from the TNCs last Wednesday and have released an initial draft order.

One of the requirements stipulated in the draft order was for private vehicles, just like Uber, to secure accreditation as a TNC with the agency and for prospective drivers or owner’s of TNCs to apply for a TNVS franchise with the LTFRB.

The order also specifies that vehicles under any TNVS franchise must not be older than three years old and should operated by accredited TNCs.

Being a draft order, this and other provisions are still open to amendments as the agency along with the TNCs continues to find common ground in order to provide the public with and more innovative transportation service.

“This department is supportive of new approaches to addressing transportation inadequacies.  Our aim is to encourage the use of even more technologies and innovations across all forms of public land transport.  Nonetheless, government regulation is a must where public services are concerned. Regulation is a must for public safety and order. This is not only a requirement of law; it is meant to protect the public. We are aware that regulations must keep up with fast-paced technological innovations, and one way to do that is to amend some policies which may no longer be responsive to today’s needs,” as stated in the LTFRB order.

 So if you're planning to fund a vehicle under Uber's car-sharing program, be guided by the LTFRB's latest draft memos.