Various transport networking vehicle service groups said Monday the streamlining of vehicle franchising requirements is expected generate more jobs and plug the supply gaps.
“With this favorable development, our dream of reliably serving the riding public and generating more jobs for the Filipinos with ease is a step closer to turning into reality,” said TNVS CommUNITY representative and TNVS Alliance PH chairperson Aylene Paguio.
The TNVS CommUNITY is composed of several of the largest TNVS organizations in the country such as TNVS Alliance PH, Transport Vehicle Representatives, TNVS Community Council Leaders, TNVS Individual 1 Alliance, Unity of Leaders for TNVS Community, the Philippine Metropolitan Transport Group and the TNVS News Community.
The Land Transportation Franchising and Regulatory Board last week announced that it would no longer require a certificate of conformity to secure a vehicle franchise—a requirement which the regulatory body determined as a “frequent cause of delay or dismissal of applications.”
A COC is issued by a bank or financial institution, and is required by the LTFRB in CPC applications in cases wherein the vehicle is not yet fully paid.
LTFRB said in its Board Resolution No. 05 Series of 2023 that dropping the COC from the application process was part of its “commitment” to comply with the objectives of Republic Act 11032, or the Ease of Doing Business and Efficient Government Delivery Service Act of 2018, which was put in place to curb red tape, streamline bureaucratic requirements and procedures, and expedite business and non-business transaction in government.
LTFRB chairman Teofilo Guadiz 3rd said, “removing the COC requirement in vehicle franchise application will help ease the burden among the transacting public and give them more convenience in securing that much-needed vehicle franchise.”
Grab Philippines senior director for operations Ronald Roda earlier said that despite the additional TNVS slots, filling up the actual cars was “difficult” due to requirements and lengthy application process.
The LTFRB earlier announced the additional 100,000 slots for Grab to address the increasing demand for TNVS in the country.
Data from Grab showed that daily bookings in Greater Metro Manila exceeded the existing supply of ride-hailing drivers, with Grab serving less than half of the passenger demand volume in December.