LTFRB urged: Open 15,000 slots for Grab units

MANILA, Philippines — Ridehailing platform Grab is asking the Land Transportation Franchising and Regulatory Board (LTFRB) to open the remaining 15,000 slots for the application of new Transport Network Vehicle Service (TNVS) units.

Grab president Brian Cu said that the opening of application for TNVS franchises would address currently vehicle supply shortages that lead to longer waiting times and surcharges for passengers.

“There are at least 15,000  slots there that can be opened sana. If the 15,000 gets filled up then quality could improve,” he said in an interview. 

Grab currently has an active roster of 50,000 drivers a month, well within the 65,000 TNVS cap imposed by the regulatory board.

The LTFRB last opened 20,000 slots for the application of new TNVS franchises but Cu said this has already been filled up. 

Cu said that around 85 to 90 percent of their fleet already have their franchises while the rest are still awaiting their hearings with the LTFRB. 

He added that the government has reached its goal of cleaning up the franchise mess but now it needs to open more slots to new drivers. 

With the current supply, Grab has a fulfillment rate, or rate of passengers being served, in the “very low 60s.”

Cu said that another 6,000 cars on the road would get this rate to about 70 percent, the optimal rate wherein both passengers and drivers would not wait too long. 

Once the 15,000 slots are opened and filled, Cu said it wants the LTFRB to start the review process that could perhaps increase the cap.