Title
LTFRB Regulation of TNC and TNVS
Law
Department Order No. 2018-013
Decision Date
Jul 30, 2018
The Land Transportation Franchising and Regulatory Board (LTFRB) is empowered to regulate Transport Network Companies (TNCs) and Transportation Network Vehicle Services (TNVS) as public utilities, ensuring safe, reliable, and efficient land transportation services through comprehensive oversight, fare setting, and compliance enforcement.

Questions (DEPARTMENT ORDER NO. 2018-013)

It aims to further regulate Transport Network Companies (TNCs) and their Transportation Network Vehicles Service (TNVS) to promote safe, reliable, and efficient land transportation, and to centralize their regulation under the LTFRB.

A person or entity that provides pre-arranged transportation services for compensation using an internet-based or digital platform technology connecting passengers with drivers using their personal vehicles.

A TNC-accredited private vehicle owner, considered a common carrier, using the same internet-based technology to transport passengers from one point to another for compensation; it cannot operate as a common carrier outside or independent of the TNC platform.

It characterizes TNCs and TNVS as engaged in carrying or transporting passengers for compensation and offering their services to the public, making them subject to full State regulation due to public interest.

Persons or entities providing pre-arranged transportation services for compensation via internet/digital platforms connecting passengers with drivers using personal vehicles—both the operator and the driver/owner.

They are treated as public transport providers and thus considered as engaged in the operation of a public utility.

The LTFRB provides full regulation and supervision, including franchise application approval/denial, setting of fares, routes, operating conditions, and imposing fines, suspension, or cancellation of franchise/accreditation.

A CPC granted by the LTFRB to TNCs and their accredited TNVS upon full compliance with jurisdictional requirements, publication, and hearing as determined by the LTFRB.

They are determined by the LTFRB after a public hearing or in consultation with the TNCs and TNVS.

They must observe the diligence required of common carriers under the New Civil Code.

All pertinent laws, particularly laws governing common carriers, and all rules and regulations promulgated by the Department and the LTFRB.

Fines, suspension, and cancellation of accreditation, subject to notice and hearing.

Notice and hearing are required before imposing fines, suspension, or cancellation of accreditation.

If any part/provision is held unconstitutional or invalid, the remaining parts/provisions not affected continue in full force and effect.

All other Department Orders, Circulars, Special Orders, Office Orders, and other issuances inconsistent with this Order are superseded or modified accordingly.

It takes effect immediately.

Executive Order No. 202.

The power to determine, prescribe, approve, and periodically review/adjust reasonable fares, rates, and other related charges for public land transportation services provided by motorized vehicles.


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