Title
TNC Accreditation Terms and Conditions
Law
Ltfrb Memorandum Circular No. 2015-016
Decision Date
May 28, 2015
The LTFRB establishes stringent terms for Transportation Network Companies (TNCs), mandating pre-arranged rides through digital applications, driver background checks, transparent fare structures, and compliance monitoring to ensure passenger safety and service accountability.
certificate
transportation
network company

Policy purpose and required incorporation

  • The Circular requires that the Terms and Conditions form part of every Certificate issued to a holder of a Certificate of Transportation Network Company (TNC) Accreditation.
  • The Circular states that the Terms and Conditions provide proper guidance and observance for all TNC Accreditation holders.
  • It declares that these Terms and Conditions operate as enforceable conditions attached to the Certificate.

Core operational requirements (TNC platform)

  • Every trip must be pre-arranged through the use of an internet-based digital technology application.
  • The digital technology application must allow passengers to view the TNC-accredited driver’s name and photograph, the vehicle’s license plate number, and the case number issued by the Board on the device used to connect before the trip is initiated.
  • The digital technology application must make the rate structure transparent before a potential passenger confirms the ride.
  • The application must clearly display the total fare and the fare range or rate by distance or time.
  • The application must include a complaint mechanism for passengers to register complaints or report lost items, and must include the Hotline Number of the Board.

Driver screening, accreditation, and training

  • The accredited TNC must conduct a criminal background check and screening on all applicant-drivers before endorsing them to the Board.
  • The accredited TNC must accredit an applicant-driver who possesses a professional Driver’s License.
  • The accredited TNC must accredit only drivers who have demonstrated the ability to read, write, and speak Filipino and English.
  • The accredited TNC must establish a continuing Training Program for its accredited drivers, covering updated and current information on:
    • the use of the digital technology application,
    • safety and standards, and
    • the terms and conditions applicable to the drivers.
  • The accredited TNC must employ a “zero tolerance drug and alcohol policy” with respect to its accredited drivers.

Driver identification and enforcement interface

  • The accredited TNC must issue an identification card with a photograph to all drivers it accredits.
  • Drivers must wear the identification card during the pre-arranged ride.
  • Within thirty (30) days from issuance of the Certificate, the accredited TNC must provide the Board a mechanism to check and verify whether a driver is:
    • active on the dispatch system application,
    • en route to a passenger location, or
    • engaged with a passenger in a pre-arranged ride.
  • The accredited TNC must provide the Board specific information on specific drivers, passengers, or rides upon request.

Reporting duties for incidents and criminal matters

  • The accredited TNC must report to the Board through the Legal Division.
  • Within twenty-four (24) hours from receipt of a report or reliable information, the accredited TNC must report any assault or robbery by its accredited drivers to their passengers.
  • Within twenty-four (24) hours from receipt of a report or reliable information, the accredited TNC must report whenever the accreditation of any driver has been revoked.
  • Within forty-eight (48) hours from receipt of a report or reliable information, the accredited TNC must report whenever its accredited owner/drivers are convicted of criminal offenses bearing on their ability or fitness to operate a TNVS, including: theft, fraud, robbery, assault, sex crime, alcohol, drugs or prostitution.
  • Within seventy-two (72) hours from receipt of a report or reliable information, the accredited TNC must report whenever any accredited owner/driver is involved in an accident resulting in physical injuries or death.

Vehicle rules, inspection, and prohibited installations

  • The accredited TNC must have its vehicles physically inspected through its vehicle accrediting process.
  • The accredited TNC must not allow accredited TNVS vehicles to be installed with a toplight or taximeter.
  • The accredited TNC must only allow duly franchised TNVS vehicles to provide a pre-arranged ride through its internet-based digital technology application.

Airport pickup limits and vehicle appearance

  • The accredited TNC must not facilitate a pre-arranged ride to pick-up passengers in the airports, unless authorized by airport management.
  • The accredited TNC must require a “trade dress” for proper identification of the vehicle as associated with the particular TNC by the public and passengers.
  • The TNC must require accredited drivers to make the trade dress visible whenever engaged in a pre-arranged ride.
  • Magnetic or removable trade dress is acceptable.

Receipts and passenger documentation

  • Upon completion of a pre-arranged ride, the accredited TNC must transmit to the passenger an electronic receipt by electronic mail or text message, or an official receipt duly approved by the Bureau of Internal Revenue.
  • The receipt must contain:
    • the point of origin and destination of the ride,
    • the total distance and duration of the ride, and
    • the total fare paid.

Accreditation transferability and driver communications restrictions

  • The Accreditation Certificate cannot be sold, assigned, leased, or otherwise transferred or encumbered.
  • The accredited TNC must not, in any manner, notify its drivers that a potential passenger is an employee or official of the Board.

Liability and compliance assurance

  • The accredited TNC is liable if it knowingly allows an ineligible driver to access its digital technology application platform or network, or if it fails to annually ascertain the eligibility of each driver.
  • The accredited TNC must ensure and assist the Board in monitoring compliance with the Terms and Conditions of a Certificate of Public Convenience to Operate a Transportation Network Vehicle Service by its accredited owners/drivers.

Records, operational reporting schedule, and content

  • The accredited TNC must provide the Board accurate and complete operational records every six (6) months showing:
    • the total number of rides provided by TNVS,
    • the total number of rides per accredited TNVS vehicle,
    • the number of accidents per accredited TNVS vehicle,
    • reports of crimes against drivers and actions taken, and
    • records of passenger complaints and actions taken.

Legal compliance, policy changes, and enforcement

  • The accredited TNC must ensure compliance with all applicable laws of the country, and with all rules and regulations of the DOTC and the Board.
  • The status and requirements of the Accreditation Certificate may change if a law is passed or any policy from the Department of Transportation and Communications (DOTC) is issued regarding regulation of the new industry.
  • Any willful violation or non-compliance with the Terms and Conditions is a ground for cancellation of Accreditation, subject to notice and hearing.
  • All other issuances inconsistent with the Circular are modified or superseded accordingly.

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