• The LTFRB has put a cap on the number of TVNS units that can ply nationwide
• Only 45,700 TVNS units will be allowed to ply the roads of Metro manila and other areas in the country
• Currently, Grab has 55,000 TVNS units, while Uber has 70,000 units
The Land Transportation Franchising and Regulatory Board, (LTFRB) has put a cap on the number of transport vehicle network services (TVNS) units that can ply the roads of Metro Manila and other areas in the country.
As mentioned in a CNN PH story, the combined TVNS units of transport network companies (TNC) Grab and Uber shall be limited to 45,700 nationwide.
The LTFRB Memorandum Circular Number 2018-003 stated that, of the total number, 45,000 TVNS units will be in Metro Manila, 500 in Metro Cebu and 200 in Pampanga. The memorandum circular was released on Thursday, January 18.
Currently, Grab has 55,000 TVNS units, while Uber has 70,000 units, which are above the limit set by the LTFRB.
“The numbers were arrived at based on the data given by the TNCs considering its ‘dual citizenship,’ part time, fulltime, number of bookings as well as churn rates,” the transport regulatory board member Aileen Lizada said.
Lizada explained that “dual citizen” TVNS drivers are drivers who switch between Grab and Uber. She said 45% to 50% of the TVNS drivers have “dual citizenship.” Churn rate means the number of drivers who decided to quit driving.
Grab said it would appeal the LTFRB’s decision, while Uber said it will study the impact of the order.