The Land Transportation and Franchising Regulatory Board (LTFRB) has issued a memorandum suspending the acceptance of new applications for ride-sharing services from Uber, Grab, and u-Hop.
In Memorandum Circular No. 2016-008, the LTFRB mandated all its divisions to halt the acceptance of new transport network vehicle service (TNVS) applications operating in the National Capital Region. The LTFRB clarified that the suspension only applies to new applications. Applications submitted before the memorandum will still be processed accordingly.
According to Transportation Department Spokesperson Cherie Mercado, the memorandum was issued due to the overwhelming backlog of unprocessed TNVS applications. As of July 15, more than 27,000 TNVS applications are still pending at the LTFRB.
Mercado also mentioned that aside from the reexamination of existing ride-sharing franchise policies, the memorandum will also cover a review of the TNVS pricing scheme, particularly its surge pricing mechanism. Conventional taxi operators and related transport groups have complained about surge pricing earlier this year, protesting that they aren’t allowed to charge such rates.