Legal basis and policy objective
- The order establishes a need to regulate TNCs and their TNVS to promote safe, reliable, and efficient land transportation services.
- The order centralizes regulation of entities operating as TNCs and TNVS under the authority of the LTFRB.
- The order treats TNCs and TNVS as operating with public interest and subject to the full regulation of the State as public transport providers.
- The order recognizes that the LTFRB is empowered to promulgate, administer, enforce, and monitor compliance of public land transportation policies, laws, and regulations.
- The order recognizes that LTFRB is empowered to determine, prescribe, and approve, and periodically review and adjust, reasonable fares, rates, and other related charges for motorized public land transportation services.
Defined terms: TNC and TNVS
- A Transportation Network Company (TNC) refers to a person or entity that provides pre-arranged transportation services for compensation using internet-based technology (digital platform technology) that connects passengers with drivers using their personal vehicles.
- A Transportation Network Vehicle Service (TNVS) refers to a TNC-accredited private vehicle owner that is a common carrier using the internet-based technology to transport passengers from one point to another for compensation.
- TNVS cannot operate as a common carrier outside of or independent from the internet-based technology of the TNC or TNCs to which they are accredited.
Coverage and public utility treatment
- The order applies to persons or entities that provide pre-arranged transportation services for compensation using internet-based technology/digital platforms to connect passengers with drivers using their personal vehicles.
- The operator and the driver and/or owner are treated as public transport providers.
- The order treats operators and their drivers and/or owners as engaged in the operation of a public utility.
LTFRB regulation, supervision, and approval
- TNCs and TNVS are subject to full regulation and supervision by the LTFRB.
- LTFRB supervision includes: application and approval/denial of franchise, setting of fares, routes, operating conditions, and imposition of fines, suspension, and cancellation of franchise.
- A Certificate of Public Convenience must be granted by the LTFRB to TNCs and to their accredited TNVS upon full compliance of jurisdictional requirements, publication, and hearing, as determined by the LTFRB.
- The LTFRB is mandated to issue guidelines for effective regulation of TNCs and TNVS in accordance with this order.
Fare setting and public hearing
- The fare for TNVS is determined by the LTFRB.
- The determination of TNVS fares is made after public hearing or in consultation with the TNCs and TNVS.
Liability and compliance duties
- TNCs and TNVS must observe the diligence required of common carriers under the New Civil Code.
- TNCs and TNVS must comply with all pertinent laws, particularly the law governing common carriers.
- TNCs and TNVS must comply with all rules and regulations promulgated by the Department and the LTFRB.
Sanctions and procedural safeguards
- Any violation or non-compliance by TNCs and TNVS with LTFRB guidelines is a ground for the imposition of:
- Fines
- Suspension
- Cancellation of Accreditation
- The imposition of sanctions is subject to notice and hearing.
Separability and repealing of inconsistent issuances
- A separability clause provides that if any part or provision of the Department Order is held unconstitutional or invalid, the remaining parts or provisions not affected continue in full force and effect.
- All other Department Orders, Circulars, Special Orders, Office Orders, and/or other issuances inconsistent with the order are superseded or modified accordingly.