Question & AnswerQ&A (DEPARTMENT ORDER NO. 2018-013)
The primary objective of Department Order No. 2018-013 is to centralize the regulation of Transport Network Companies (TNCs) and Transportation Network Vehicles Service (TNVS) under the authority of the Land Transportation Franchising and Regulatory Board (LTFRB) to promote safe, reliable, and efficient land transportation services.
A Transportation Network Company (TNC) refers to a person or entity that provides pre-arranged transportation services for compensation using an internet-based technology application or digital platform technology to connect passengers with drivers using their personal vehicles.
A TNVS is a TNC-accredited private vehicle owner that is a common carrier using an internet-based technology application or digital platform to transport passengers from one point to another for compensation. A TNVS cannot operate independently of the TNC digital platform to which they are accredited.
The Land Transportation Franchising and Regulatory Board (LTFRB) has full regulatory and supervisory authority over TNCs and TNVS, including application and approval/denial of franchise, fare setting, route regulation, operating conditions, and enforcement of penalties.
Yes, both TNCs and TNVS are deemed to be engaged in the operation of a public utility as they provide transportation services to the public for compensation, thus subjecting them to full state regulation.
TNCs and their accredited TNVS must secure a Certificate of Public Convenience (CPC) from the LTFRB upon full compliance with jurisdictional requirements, including publication and hearing as determined by the LTFRB.
Fares for the TNVS are determined by the LTFRB after conducting a public hearing or in consultation with the TNCs and TNVS.
TNCs and TNVS, as public transport providers, are required to observe the diligence mandated for common carriers under the New Civil Code, making them liable for passenger safety and service quality.
Violations can result in fines, suspension, or cancellation of accreditation, following due notice and hearing procedures.
Yes, this Order supersedes or modifies all other Department Orders, Circulars, Special Orders, Office Orders, or issuances that are inconsistent with it.