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WHEREAS, Section 5 (c) of Executive Order (E.O.) No. 202 explicitly provides that among the powers and functions of the Land Transportation Franchising and Regulatory Board (LTFRB) is the power to “determine, prescribe and approve and periodically adjust reasonable fares, rates and other related charges, relative to the operation of public land transportation services provided by motorized vehicles.”

WHEREAS, the Department of Transportation (DOTr)issued Department Order (D.O.) No. 2018-013 (Re: Authority of the Land Transportation Franchising and Regulatory Board [LTFRB] to Regulate the Transport network Companies [TNCs] and  Transportation  Network  Vehicle  Service  [TNVS])  Section  4  of  which provides:

“Section  4.  Regulation  and  Supervision.  -  The  TNCs  and  TNVS  are subject to the full regulation and supervision by the Land Transportation Franchising and Regulatory Board (LTFRB), including but not limited to application  and  approval/denial  of  franchise,  setting  of  fares,  routes, operating conditions and imposition of fines, suspension and cancellation of franchise.”

WHEREAS,  upon  review  by  the  Board  of  the  existing  fare  structure  in  the transport industry, there is a need to rationalize and adjust the fare structure for TNVS in order to maintain its viability.

WHEREFORE,   premises   considered,   pursuant   to   the  Board’s  power  to determine, prescribe and set fares for public land transportation services under E.O. No. 202 and D.O. No. 2018-013, the Board hereby AUTHORIZES Transportation Network Vehicle Service to CHARGE TWO PESOS (P2.00) per minute of travel time from origin to destination as part of its fare structure subject to the following:

1.   The 2.00 per minute charge shall apply to all types of TNVS vehicles whether
Sedan, AUV/6 seater, SUV and Sub-Compact/Hatchback.
2.    The electronic receipt issued by the TNCs shall be unbundled to reflect the breakdown of the fare; e.g. flag down rate, per km rate, travel time rate and surge price.
3.    With respect to TNCs MYTAXI.PH, Inc. (GRAB) and HYPE TRANSPORT SYSTEMS, INC. (HYPE), the authorization granted under this Memorandum Circular shall be without prejudice to the final resolution of MYTAXI.PH, Inc. (GRAB), Respondent. under Case No. CO-EB-2018-04-0039 and HYPE TRANSPORT SYSTEMS, INC., Respondent. under Case No. CO-EB-2018-0088.

This Memorandum Circular supersedes, amends, and/ or modifies previous circulars, if any, as well as all other issuances or parts thereof which are inconsistent  herewith  and  shall  take  effect  fifteen  (15)  days  following  its publication in a newspaper of general circulation in the Philippines and filing of three (3) copies thereof to the UP Law Center for recording purposes, pursuant to Presidential Memorandum Circular No. 11, dated October 9, 1992.

SO ORDERED.

Quezon City, Philippines. 05 September 2018

(SGD) ENGR. RONALDO E. CORPUS Board Member

(SGD) ATTY. AILEEN LOURDES A. LIZADA Board Member