LTFRB probes 21 TNCs over ‘tempo drivers’

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) yesterday ordered several ride-hailing firms to explain the overboarding of transport network vehicle services (TNVS) and motorcycle (MC) taxi drivers.

Twenty-one transport network companies (TNCs) were issued show-cause orders by the LTFRB for allegedly onboarding vehicles beyond the government limit, resulting in the rise of “tempo drivers” or those operating with temporary or fake provisional authority.

The LTFRB earlier flagged discrepancies between the number of authorized and actual TNCs, as discovered during the cash aid distribution by the Department of Social Welfare and Development.

“We want to ferret out the truth in relation to this incident. Is there a deliberate attempt to increase the number of beneficiaries on their part or is this a case of negligence and incompetence to comply with the order?” LTFRB Chairman Vigor Mendoza II said.

According to the LTFRB data, there are 197,000 TNVS units to date, far exceeding the 54,000 cap. There are 252,000 MC taxis, way above the 78,826 limit.

“We don’t want the drivers to lose their jobs. Part of the process is to consult with them,” Mendoza said. “We also don’t want to flood the market with too many TNVS units to the point that they can no longer earn.”

Mendoza said they are looking at the possibility of delays in granting provisional authority, which led to the inflated number of drivers and riders.

“Perhaps because of the long processing time for a provisional authority, onboarding happens first since they already need to start paying their bank amortization,” he said.

One corrective measure, Mendoza said, is to start using an online franchise application system for transparency.

The LTFRB chief said they want to prioritize tempo drivers to reduce colorum vehicles on the road.

Mendoza noted that colorum operations have sanctions, including fines of up to P50,000 and suspension or revocation of operating authority.

TNCs are required to submit an explanation within five days upon receipt of the show-cause order on why their authority to operate should not be suspended or revoked.