LTFRB Regulation Requirements for Uber: TVNS and CPCImportant things you need to know about the Ride Sharing Regulation covering Uber.
Ridesharing is now legal in the Philippines!
DOTC and LTFRB is now regulating ride sharing services in the Philippines. Ridesharing companies such as Uber, Grab, Easy, Tripid, Tripda will be regulated under a new category “Transportation Network Company” (TNC).
According to the Memorandum Circular 20015-15 of LTFRB, a Transportation Network Company (TNC) is an “organization/corporation/partnership/sole proprietor, that provides pre-arranged transportation services for compensation using an internet-based technology application or digital platform technology to connect passengers with drivers using their personal vehicles”.
TNCs are required to secure a Certificate of Accreditation which is valid for 2 years. These TNCs are also subject to certain terms and conditions. You may refer to the highlights of these terms and conditions below.
Get LTFRB Accreditation thru Uber Compliance Program
For existing Partner-Operators, Partner-Drivers, and Drivers under an Operator, you’ll need to submit requirements for the accreditation. Know the different requirements and how to accomplish and submit your documents.
For NEW partners (interested to sign up), you DON’T need to get accreditation with LTFRB before you register. Simply sign up with Uber and go through the registration process. Once you’re successful in your Partner registration, you can get the LTFRB Accreditation through the Uber Compliance Program.
TNCs are the companies providing the platform (such as Uber, Grab, Easy, Tripda, Tripid, etc) NOT the partners, operators and drivers who own or drives the vehicle. Partners, Operators, and Drivers are considered independent contractors who provide the transport services directly to passengers.
As independent contractors, Partners, Operators and Drivers are categorized as Transportation Vehicle Network Service (TVNS). To operate a TVNS, it is required to secure a Certificate of Public Convenience (CPC) from LTFRB. In order to secure a CPC, the applicant must be a business entity– sole proprietor, partnership, corporation or cooperative. It is also required that the applicant entity is registered with BIR.
Refer below on the terms and conditions of TVNS as well as the requirements to get CPC.
Terms and Conditions for TNCs and TVNS
Partners, Operators and Drivers of a TNC are required to secure a Certificate of Public Convenience (CPC) to operate a Transport Vehicle Network Service. This CPCs are subject to certain terms and conditions from LTFRB.
Here’s the highlight of the terms and conditions:
- To get a CPC and operate, Applicant must either be a sole proprietorship, partnership, cooperative, or a corporation. Refer to the CPC Requirements below.
- CPC cannot be sold, assigned, leased, or transferred.
- CPC shall be revoked if the operator’s accreditation with the TNC is revoked or if the Accreditation of the TNC itself is revoked by the regulating body.
- Operator cannot display any advertisement on the exterior of the registered vehicle unit.
- Driver must always display the trade dres.
- Driver must always wear the ID issued by TNC.
- Driver shall strictly comply with “NO Smoking Policy”. **The riders should also comply to this also**
- Driver can carry up to a maximum of 7 passengers but not exceeding the seating capacity of the vehicle.
- Driver cannot accept passenger request s via traditional street hail, hand gestures, verbal statements, phone calls or booking service other than a TNC provided digital technology application.
- Driver is prohibited to pick-up passengers in the airports, unless authorized by the airport management.
TNC Accreditation requires the companies to pay an Accreditation Fee of PHP 10, 000 which will be valid for 2 years. Once the TNC is accredited, they are subject to certain terms and conditions.
Here are the highlights of this Terms and Conditions for TNCs:
- TNC will be required to have a complaint mechanism for passengers.
- TNC shall issue IDs to its accredited drivers which the drivers are required to wear when they drive.
- The regulating body (LTFRB/DOTC thru the board/committee) will be provided access, upon request, to the drivers data and status. These data include details of trips.
- TNCs are required to physically inspect the vehicle during their accreditation process. This means uploading photos of vehicle won’t be enough anymore.
- TNC cannot facilitate a pre-arranged ride to pick-up passengers in the airports, unless authorized by the airport management. **We’re not sure if this means we cannot pick-up passengers in the airport anymore. We wonder how they can restrict the requests of the riders coming from the airport.**
- TNC shall have a “trade dress” to identify the vehicle. This can be a removable trade dress. **As of now, Uber has not yet announced what “trade dress” the drivers need to adopt.**
- TNC shall only allow duly franchised TNVS vehicles to provide a pre-arranged ride through its internet-based digital technology application. **We are not sure about the repercussion of this clause. Does this mean as a
- TVNS, we cannot accept vehicle rentals outside the TNCs?**
- TNCs are required to provide accurate and complete operational data every 6 months to the regulating body.
- TNCs are required to transmit an electronic receipt to the passenger after each ride. This electornic receipt has to be duly approved by the Bureau of Internal Revenue.
How to Get Certificate of Public Convenience (CPC)?If you have or plan to register a vehicle with Uber, you need to secure a Certificate of Convenience (CPC) from LTFRB to operate a Transport Network Vehicle Service (TVNS). The requirements are outlined below.
You can refer here for the complete guideline from LTFRB.
Here’s a quick guide about the requirements to secure a CPC:
CPC Applicant Requirement
The requirements re:
- 5 copies of Verified Application. Download Application Form here.
- Photocopy of Proof of Filipino Citizenship for sole proprietors or Articles of Incorporation for partnerships and corporations.
- Photocopy of Proof of Good Standing from the TNC. As of the moment, Uber has not yet issued this.
- Photocopy of Passenger Insurance Policy. Refer to this post about Passenger insurance.
- List of TNVS Drivers and TNVS vehicles.
- 2 copies of Operators Data Sheet with 2×2 picture of applicant. Download Operators Data Sheet here.
- Accomplishe copy of Statement of Financial Capability Form with corresponding proof. Download Statement of Financial Capability Form here.
- BIR Certificate of Registration or ITR duly filed with BIR. Refer to this article on how to secure a Certificate of Registration from BIR.
- Certificate of Business Name from DTI or SEC Certificate.
- Location Map of garage or address of operator.
Applicant's Driver/s Requirement
- Proof of Accreditation of the Driver by a TNC. **As of the moment, Uber has not yet issued this Proof of Accreditation.**
- Copy of drivers Professional Driver’s License
- NBI Clearance. Refer to this article on how to get NBI Clearance.
- PNP Clearance. Refer to this article on how to get PNP Clearance from CAMP Crame. Note: This is not the same as the local Police Clearance.
- Proof of Accreditation of the vehicle from TNC. **As of now, Uber has not yet issued this.**
- Certificate of Registration and OR issued by LTO OR Delivery Receipt/Sales Invoice.
Filing Fee for the first 2 applied units
Legal Research Fee
PHP 70 per unit
In excess of first 2 applied units
Validity of CPC
CPC is valid for 1 year and may be renewed so long as the operator and driver are still in good standing with the TNC.
- TVNS who wants to operate within or touching Metro Manila have to file application at the LTFRB Central Office.
- Regional Franchising and Regulatory Offices may accept and approve applications.
- Refer here for the location of LTFRB Offices.