The lifting of the moratorium on the entry of new Transport Network Companies (TNCs) has underscored the need for government to support local companies in the transport network vehicle service (TNVS) that will be heavily affected by this decision of the Land Transportation Franchising and Regulatory Board.
Rizal 2nd District Rep. Fidel Nograles aired this appeal as he noted that the LTFRB believes that some companies might not be operationally capable in assuming TNC responsibilities.
Nograles said the LTFRB is referring to local companies that compete with the current market leader which is an international brand.
“This means lifting the moratorium equates to opening the market to more foreign players. We think that the government should support our local companies first before allowing foreign corporations to take over the Philippine TNVS market.” said Nograles, vice chairman of the House Committee on Justice.
He explained that instead of supporting local companies, the LTFRB decided to impose a cap on the vehicles every TNC can accommodate in their system.
“Aside from competing with a foreign-owned giant, this cap makes things even more difficult for homegrown ride-hailing apps,” Nograles lamented.
“Instead of lifting the moratorium for new players, the LTFRB should lift the cap for TNCs. While our priority should still be in developing mass transportation options, the pandemic and the current lack of buses and jeeps push some commuters to use ride-hailing apps,” the administration lawmaker stated.
He stressed: “Demand for TNVS is really high and will even increase further due to the Christmas season and the expected relaxation of quarantine protocols.” Aside from lifting the cap, Nograles stated that the LTFRB and the Department of Transportation should study other ways to support Filipino-owned transport apps.
“The best way to do it is to consult these local players and commuter groups on how the government can intervene,” Nograles said.