Clark Freeport Zone— Department of Transportation (DOTr) Secretary Arthur Tugade signed earlier this morning a Department Order giving full authority to the Land Transportation Franchising and Regulatory Board (LTFRB) to regulate and supervise Transport Network Companies (TNCs) and the Transport Network Vehicle Service (TNVS) units that operate under them.

In the DO, the DOTr recognized the establishment of the roles of TNCs and TNVS in providing transport services to the public, as well as in promoting safe, reliable, and efficient land transportation services in the country.

As mandated by law, the Land Transportation Franchising and Regulatory (LTFRB) was tasked to regulate and monitor the compliance of TNCs and TNVS with policies, laws, and regulations.

“We acknowledge the value of TNCs into our land transport system. Bago ito at maraming bansa ang nangangapa pa sa kung papaano ito i-handle. But, since it is convenient and efficient, and our people need them, nararapat lamang na bigyan natin ito ng puwang,” said Transportation Secretary Arthur Tugade.

He added that regulation is seen to benefit all parties.

“Kapag pumasok ka sa public transport, may pananagutan ka. Kaya mahalaga na may regulasyon para nababantayan at nasisiguro natin na walang naaagrabyado. Gusto mo ba na ikaw legal na naghahanap-buhay pero ‘yung iba hindi? Siyempre gusto natin patas ang playing field at patas ang kompetisyon,” he added.

Meanwhile, DOTr Undersecretary for Road Transport and Infrastructure Tim Orbos said that the signing of the DO is relevant, as it takes into paramount consideration the safety and protection of commuters.

“With an operations imbued with public interest, state regulation is necessary in order to ensure that the interests of all parties, most especially the riding public, are protected,” Usec. Orbos said.

The LTFRB, such as the case for all public utility vehicles (PUVs), is in charge of issuing franchises, setting of routes, setting of operating conditions, and imposing fines, suspensions, and cancellations when necessary. Fares, rates, and other related charges will also be determined by the LTFRB after public hearings and consultations in order to ensure that they are just and reasonable.

For his part, LTFRB Chairman Martin Delgra III said the agency is ready to fulfill its mandate. Already, the LTFRB is processing applications for franchises to ensure that no colorum TNVS will be plying the streets.

“The LTFRB has been engaging with TNCs and TNVS operators and drivers far more often than any other group over the past year. It is because we see their value, and because we believe that if done right, they will make a big difference and our commuters will ultimately benefit,” Chairman Delgra said.

Grab Statement

We have yet to receive a copy of the Department Order, but rest assured Grab will comply, as always, to the orders set forth by the Department of Transportation (DOTr). We also recognize and reiterate our deference to the authority of the Land Transportation Franchising and Regulatory Board (LTFRB), and we will continue to abide by the regulations issued by the Board.

The recent Department Order highlights the continuing progress and improvement of the legal framework governing TNCs and TNVS. It has made improvements since the issuance of DO 2015-011, DO 2017-011, and until the recent DO. The new Department Order, which we welcome, strengthens Grab’s position that the fare structure with the P2 per minute component is legal. Since the DO 2015-011, Grab has faithfully complied with the framework and the requirements imposed upon us by DOTr and the LTFRB.

Grab will continue its commitment to create the safest transportation platform, making transportation accessible to all, and improving the lives of our partners.

Grab will also continue to support the DOTr and the LTFRB in their mandate to ensure the safety and protection of commuters.

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