The Land Transportation and Regulatory Board (LTFRB) said the Court of Appeals of Cebu City recently dismissed the petition of Metro Cebu Taxi Operators Association (MCTOA) against the agency for allowing the operation of ride-sharing apps in the city.
In a 12-page resolution, the CA stated there is no clear and apparent reason to question the directives of the LTFRB, in relations to transport network companies (TNCs) and TNVS transport network vehicle services (TNVS).
The court said the LTFRB orders generally fall ?under its powers and functions, ?to issue, amend, revise, suspend or cancel Certificates of Public Convenience (CPCs) or permits authorizing the operation of public land transportation services provided by motorized vehicles??
?We are pleased with the decision of Court of Appeals of Cebu City in dismissing MCTOA?s petition since we believe there is no legal infirmity for TNVS operating on provisional authority pending issuance of their franchise,? outgoing LTFRB chairman Winston Ginez said.
The operations of TNVS were regulated by the agency through Memorandum Circular Orders (MCs) issued in May last year, setting specific guidelines that require all TNVS and TNCs to secure the required CPCs before they can offer their services.
The MCs state, among others, the process and legal documentary requirements for accreditation of a TNC and what TNVS operators needed in order to secure their franchises before they can start operating online-enabled transport services (OETS).
The MCTOA filed the petition for temporary restraining order on April 29, 2016, questioning the constitutionality and the validity of the Department Orders and MCs issued by the the LTFRB and the DOTC regarding the operations of TNCs/TNVS.
?While the Board is open to embracing new technology, we want to ensure the public?s safety and convenience by accreditation of qualified TNCs and issuance of franchises to TNVS operators that meet LTFRB?s legal requirements,? Ginez said
