The Department of Transportation said Monday it is processing more applications for transport network vehicle service franchises, as it denied claims there is a supply crisis in the sector.
“Grab seems to confuse drivers with TNVS in determining supply. LTFRB [Land Transportation Franchising and Regulatory Board] issues franchises or provisional authority to TNVS for them to legally get bookings and accept passengers. Hence, if a TNVS with a PA or franchise cannot run because it does not have driver, it can find a replacement driver,” the department said.
Grab sent its members/drivers an e-mail blaming the government for what they call a “supply crisis.”
The ride-sharing company said the crisis stemmed from the “masterlist” of vehicles allowed to service passengers and the “supply cap” of 65,000. According to Grab, only 35,000 were on the road on a daily basis due to coding, part-time drivers and other reasons.
“The so-called ‘masterlist’ was determined in consultation with the accredited TNCs at the time namely Grab, Uber and U-Hop, to which Grab conceded. The masterlist included transportation network company accredited TNVS that have been operating without valid franchises or provisional authority, otherwise described are colorum vehicles,” the DOTr said.
It said that in order not to disrupt the service, colorum TNVs were allowed to continue to get bookings in the meantime and accept passengers through the Grab system, but their inclusion in the masterlist gave them ‘temporary legitimacy,’ while they were provided time to apply for a franchise.
“With the current number of TNCs servicing the TNVS already operating, among them Hype, Owto, GoLag and Epickmeup, service will not be adversely affected. More, two new TNCs – Hirna and Micab – are servicing the taxi service while several other TNCs whose applications are pending consideration,” it said.
The LTFRB is currently accepting applications for TNVS franchises, even outside the masterlist, it said.
“In fact, LTFRB has just completed the online registration of 10,000 new cars in addition to the masterlist, with plans to open registration for TNVS applicants for those slots in the masterlist which have become inactive,” the DOTr said.
Brian Cu, Grab Philippines country head, expressed his appreciation to LTFRB for treating the matter with the urgency it deserved. “We would like to thank the Department of Transportation for clarifying the issues and assuring everyone that the continuously growing demand for TNVS services is being addressed,” Cu said.
“Moreover, we would like to sincerely apologize for any miscommunication brought about by the EDM to targeted recipients. In no way was this EDM [electronic direct mail] meant to undermine the ongoing progress and dialogues being undertaken to add TNVS supply,” he said.