LTFRB suspends new applications for Uber, Grab and other ride-sharing services

  • LTFRB suspends new applications for TNVS like Uber, Grab, and U-hop
  • The suspension was issued to revisit existing policies
  • Uber and Grab respects the decision of the LTFRB and stressed the high demand for their services

The Land Transportation Franchising and Regulatory Board (LTFRB) called for the suspension of acceptance and processing of new applications for transport network vehicle services (TNVS) such as Uber, Grab, and U-hop in Metro Manila.

LTFRB directed its technical division and all regional offices, through memorandum circular No. 2016-008 issued on July 21, to not accept new TNVS applications to operate within National Capital Region (NCR) to make way for a review of existing policies, as per an article published by Inquirer.

LTFRB made clear that the suspension only applies to new applications and that pending applications will still be processed.

Transportation spokesperson Cherie Mercado told Rappler that the circular was issued due to the increasing number of TNVS applications and the department’s need to review the current fare scheme.

The department said there are currently 5,727 pending applications for GrabCar units, 23,292 for Uber, while U-hop has 131.

In a statement Uber released, the popular ride-sharing app said: “We respect the decision of the LTFRB to suspend the acceptance and processing of new TNVS applications. However, this decision also impedes our goal to get more people into fewer cars.”

Grab shared the similar remark as Uber and stressed the high demand for ride-sharing services.

“Grab respects the decision of the LTFRB on revisiting the policies of TNVS. We are hopeful that the playing field will be leveled among all transport providers and that this will direct the focus on providing the best passenger and driver experience,” Grab said.

“Thousands of aspiring TNV operators will be affected by this latest development, along with the thousands of passengers who rely on our services daily. At the moment, there is still more demand for our services than supply and the capping of applications will only take away an alternative for individuals who want to earn extra or those who want to improve their livelihoods,” it added.