[ MEMORANDUM CIRCULAR NO. 2018-016, August 10, 2018 ]

SUSPENSION OF ACCEPTANCE OF NEW APPLICATIONS FOR TRANSPORT NETWORK COMPANY ACCREDITATION FOR TNVS



Adopted: 09 August 2018
Date Filed: 10 August 2018

WHEREAS, per Department Order No. 2015-011 dated 08 May 2015 issued by the Department of Transportation and Communications on œFurther Amending Department  Order  No.  97-1097  to  Promote  Mobility   allows  Transport Network Companies (TNCs) to set the fare for Transportation Network Vehicle Service (TNVS) to wit:
œxxx subject to oversight from the Land Transportation Franchising and Regulatory Board (LTFRB) in cases of change in the market, whether actual or  imminently  threatened,  shortage  of  electric  power  or  other  source  of energy, strike, civil disorder, war, military action, national or local emergency, or other cause of an abnormal disruption of the market which results in the declaration of a state of emergency by the President. xxx 
WHEREAS, on 18 January 2018, the Board issued Memorandum Circular No.
2018-003 which lifted the moratorium on the acceptance of applications for the issuance of a Certificate of Public Convenience (CPC) to operate TNVS after which, there was an influx of applications for TNC accreditation and as result thereof six (6) TNCs were accredited, namely:
a)   Hype Transport Systems, Inc.
b)   GoLag, Inc.
c)    iPara Technologies and Solutions, Inc.
d)   Hirna Mobility Solutions, Inc.
e)   Micab Systems Corporation
f)    E-Pick Me Up, Inc.
Two (2) TNCs whose applications for Accreditation were denied to wit:
a)   Out-of-Town Cars Corp.
b)   Mober Technology PTE Inc.
Two (2) pending Extensions of Validity for Accreditation namely:
a)   MyTAXI.PH
b)   U-HOP Transportation Network Vehicle System, Inc.
One (1) applicant pending for resolution of the Pre-Accreditation Committee:
a)   Ryd Global, Inc.
Four (4) applicants pending for evaluation of the Pre-Accreditation Committee:
a)   Citimuber Corporation
b)   Aztech Solution International Corp.,
c)    Unified Transport Operations League (U.T.O.L) SMESOFT, Inc.
d)   iHitchonline, Inc.

WHEREAS, the Board is still in the process of reviewing, studying and issuing necessary policies in compliance with Department Order No. 2017-011 Re: Omnibus Guidelines on the Planning and Identification of Public Road Transportation Services and Franchise Issuance dated 19 June 2017 No. 2 (2.2.7) xxx Further directives on fare collection, regulation and specifications of TNVS shall be provided by the LTFRB. xxx


WHEREAS, the Department of Transportation (DOTr) issued Department Order No. 2018-013 [Re: Authority of the Land Transportation Franchising and Regulatory  Board  (LTFRB)  to  Regulate  the  Transport  Network  Companies (TNCs) and Transportation Network Vehicle Service (TNVS)] wherein the DOTr subjected the TNCs and TNVS to the full regulation and supervision by the LTFRB including fare determination and issuance of guidelines for the effective regulation of TNCs and TNVS.

WHEREAS,  despite  addressing  the  issues  on  setting  a  cap  for  TNVS  and security concerns, there is a necessity to further study the effect of the cap or limit on the pool of the sixty five thousand (65,000) approved TNVS to the number of accredited TNCs, which was suspended before the unmonitored increase of TNVS operators, having different concept of ride sharing.

NOW THEREFORE, premises considered, the Board hereby SUSPENDS the ACCEPTANCE of ALL new Applications for TNC Accreditation for TNVS to allow the Board to closely monitor the existing accredited TNCs for TNVS and those subject for renewal and/ or evaluation.

Further, ALL Applicants with Applications for TNC Accreditation pending before the Pre-Accreditation Committee are hereby directed to SUBMIT their complete and compliant requirements within 10 days from receipt or on August         2018 whichever is later, otherwise, their applications shall be DENIED by the Committee.

All  issuances  or  parts  thereof  inconsistent  herewith  are  hereby  modified, amended, or superseded accordingly.

This Memorandum Circular shall take effect after fifteen (15) calendar days reckoned from its publication in a newspaper of general circulation and the filing of three (3) copies hereof with the UP Law Center pursuant to Presidential Memorandum Circular No. 11, dated 09 October 1992.

SO ORDERED. 09 August 2018

Quezon City, Philippines.

(SGD) ATTY. MARTIN B. DELGRA III
Chairman

 
On Leave
(SGD) ENGR. RONALDO E. CORPUS
Board Member
(SGD) ATTY. AILEEN LOURDES A. LIZADA
Board Member


Attested by:

(SGD) ATTY. SAMUEL A.M. JARDIN
Executive Director