Law Summary
Definition of Transportation Network Vehicle Service (TNVS)
- A TNVS refers to a private vehicle owner accredited by a TNC.
- Operates as a common carrier using the TNC's platform but cannot operate independently or outside the TNC's digital platform.
- Provides transportation services connecting passengers from one point to another for compensation.
Scope of Application
- Applies to individuals or entities offering pre-arranged transportation services via internet-based applications for compensation.
- Both TNC operators and TNVS drivers/owners are considered public transport providers.
- Such providers are engaged in the operation of a public utility under the law.
Regulation and Supervision by LTFRB
- The Land Transportation Franchising and Regulatory Board (LTFRB) has full regulatory authority over TNCs and TNVS.
- Powers include approving or denying franchises, setting fares and routes, imposing operating conditions.
- The LTFRB may impose fines, suspend, or cancel franchises for violations.
Issuance of Certificate of Public Convenience (CPC)
- LTFRB grants CPC to TNCs and their accredited TNVS upon meeting jurisdictional requirements.
- Requirements include proper publication and hearings as deemed necessary by the LTFRB.
Fare Determination
- Fares charged by TNVS are set by the LTFRB.
- Determinations are made after public hearings or consultations with the TNCs and TNVS.
Rulemaking Authority
- LTFRB is mandated to issue guidelines and rules implementing effective regulation of TNCs and TNVS.
- These rules must be consistent with the provisions of this Order.
Liability of TNCs and TNVS
- Both are considered common carriers and therefore must exercise the diligence required under the New Civil Code.
- This imposes a legal obligation to ensure safety and reliability in the transportation services they offer.
Compliance Requirements
- TNCs and TNVS must comply with all relevant laws governing common carriers.
- Also required to follow all rules and regulations promulgated by the Department of Transportation and LTFRB.
Sanctions for Non-compliance
- Violations by TNCs or TNVS may result in penalties including fines, suspension, or cancellation of accreditation.
- Enforcement of sanctions requires proper notice and hearing.
Separability Clause
- If any provision of this Order is declared unconstitutional or invalid, the remaining provisions shall continue in full force and effect.
Repealing Clause
- This Order supersedes or modifies all previous inconsistent Department Orders, Circulars, Special Orders, or other issuances.
Immediate Effectivity
- The Order takes effect immediately upon signing.