SENATOR GRACE Poe Llamanzares, chair of the public services committee, called on the Land Transportation Franchising and Regulatory Board (LTFRB) to “explain the science” behind its decision to cap the number of Grab, Uber and other ride-sharing units at 45,000 in Metro Manila, 500 in Metro Cebu, and 200 in Pampanga. “What’s the math used in this decision? What were the parameters used, like demand and supply?” Ms. Poe said in a statement released yesterday. The LTFRB recently issued Memorandum Circular 2018-003, which set a “common supply base” for transport network vehicle service (TNVS) providers. The LTFRB has assured the public that the base will be reviewed every quarter and adjusted correspondingly based on “churning rate.” Ms. Poe, however, pointed out that, “The review should not just be based on the churning rate, which is the number of vehicles that are no longer in the system. Instead, it should be based on an algorithm that determines supply and demand. The cap will also affect not just the TNCs but the livelihood of drivers of TNVS. Given that there are currently about 100k (thousand) TNVS combined, and this number is not enough to satisfy the demand of the public, then we should start with that as the base and adjust accordingly.”

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