PH Transport Department allows hatchback cars to operate as ride-haling app vehicles

Hatchback cars can once again be used as vehicles for ride-hailing apps such as Grab.

In a statement released by the Department of Transport (DOTr) on its official Facebook page today, Secretary Arthur Tugade instructed the Land Transport Franchising and Regulatory Board (LTFRB) to implement Memorandum Circular (MC) No. 2018-005, which would allow hatchbacks to operate as ride-hailing app vehicles, but with certain conditions.

The MC that was released in February last year states that hatchback units are allowed to operate for three more years, or until 2021. However, they can only be used within Manila and have to charge lower fares than sedans and other vehicle types.

The MC also states that only hatchbacks which are included in the DOTr master list and whose applications were filed on March 5 to December 15, 2018 will be allowed to operate.

Hatchback owners have been criticizing the LTFRB because, despite the existence of the MC, the board refused to accept and process their applications as transport network vehicle service (TNVS) units or vehicles used in ride-hailing apps, reported The Philippine Daily Inquirer. 

The LTRFB’s refusal to process their applications led to the deactivation of almost 1,300 hatchback cars from ride-hailing app Grab on June 10. The owners of hatchback cars protested against this earlier this month and went on a strike, however, it was reportedly not big enough to affect Grab’s operations.

The LTFRB refused to process hatchback applications due to safety concerns. The board initially only allowed four-door sedans, compact multi-purpose vehicles (MPVs), action utility vehicles (AUVs), and sport utility vehicles (SUVs) to be TNVS, reported CNN Philippines.

The DOTr, which oversees the LTFRB, however, wants to eventually allow hatchbacks in ride-hailing apps permanently.

DOTr Undersecretary for Road Transport and Infrastructure Mark Richmund de Leon instructed the LTFRB in the statement today to revise the MC so that hatchbacks can operate beyond the three-year window that is currently in place.

He also said that hatchbacks which were previously delisted should be given priority to re-enlist by the LTFRB.