Uber, Grab allowed to hike fleets

The Land Transportation Franchising and Regulatory Board (LTFRB) has increased the common supply base of transport network vehicle services (TNVS) in the Philippines, after considering factors, such as churning rates, number coding schemes and unserved demand.

In a memorandum circular, the board resolved to amend its original order on the supply of TNVS in the Philippines to 66,750 units, from 45,700 units previously.

Broken down, the new allocations are as follows: 65,000 for Metro Manila (from 45,000), 2,500 for Cebu (from 500) and 250 for Pampanga (from 200).

“We arrived at the common base supply with consideration of the following: coding, churning rate, vehicle maintenance and availability of peer operators,” LTFRB Director Aileen Lizada said in a press briefing.

Today, there are about 99,757 units that are accredited under Uber, Grab and Uhop, the three ride-sharing companies that legally operate in the Philippines.

The amendments came after consultations with the Department of Transportation and the transport network companies (TNCs) operating in the Philippines.

It, likewise, allowed for a three-year transition period for hatchback vehicles, which it initially barred from operating due to supposed safety hazards.

Despite being allowed to continue operations, hatchback vehicles are now limited to plying routes within Metro Manila, and will now charge lower fares versus their sedan counterparts.

“Both TNCs agreed to a lower rate for hatchback,” Lizada noted.

Based on data collected by the board, there are about 14,621 hatchback units that operate under Grab and Uber.

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