Sunday, May 26, 2024

LTFRB rejects U-Hop?s TNC accreditation; Uber to test cash payments

The Land Transportation Franchising and Regulatory Board (LTFRB) denied on Friday, Oct. 23, the application as a TNC (Transportation Network Company) of Internet-based shuttle service U-Hop.


U-Hop employs a shuttle-type model where passengers can book their rides through a smartphone app for a particular route. Operators must pay P150,000 as joining fee and P75,000 for device fee.

In a memorandum to DOTC secretary Jun Abaya, the LTFRB said it cannot grant the TNC accreditation to U-Hop because the operators of the service will be plying on a ?fixed route? over a particular service area in Metro Manila.

The agency said this business model is contrary to the Department Order 2015-011, which has a ?no fixed route? provision for TNVS (Transportation Network Vehicle Service).

Although it thumbed down U-Hop?s application, the LTFRB recommended to the DOTC to explore the possibility of drafting a separate policy for Internet-based shuttle service model.

Meanwhile, pioneering ride-sharing application Uber has announced that it will roll out a cash experiment starting on Monday, Oct. 26.

This is not the first time, however, that Uber has experimented with cash payments. In countries like India where there is low penetration of credit cards, it has also allowed drivers to accept cash payments.

While some operators are glad that riders without credit cards can now avail of Uber, others are wary the drivers may now become targets of criminals and that Uber may lose its exclusivity.


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