Threatened by TNVS, Panay taxis claim they’re improving services

BY GEROME DALIPE IV

ILOILO City – The entry of Transport Network Vehicle Services (TNVS) into this metropolis has impacted the income of traditional taxi drivers. But they are not throwing in the towel.

“We are constantly improving our system. Our operators are reminding their drivers of the basic courtesy to the passengers,” said Association of Taxi Operators in Panay (ATOP) president Perfecto Yap.

Taxi operators are constantly working to modernize their operations to compete with TNVS by adopting GPS systems, enabling cashless payments, or even creating their booking apps.

However, these initiatives are still in the early stages and have yet to gain widespread traction, said Yap.

Many passengers now prefer TNVS for the convenience of app-based booking, fare transparency, cashless options, and comfort and cleanliness.

Due to lower passenger volume, taxi drivers spend more time idling in terminals, hoping to catch passengers. This reduced turnover means they make fewer daily trips, directly affecting their income.

With the rising operational costs in fuel prices, vehicle maintenance, and other operational costs, drivers lament that with fewer trips, these fixed costs eat into their daily earnings, making it harder to reach even the reduced target of P500.

ATOP has filed a complaint before the Land Transportation Franchising and Regulatory Board (LTFRB).

In an interview, Yap pointed to the practice of some TNVS drivers picking up passengers through street-hailing rather than strictly using the app.

He noted that one TNVS’ operating model stipulates that its drivers should only accept bookings made via the app, as it helps maintain accountability, ensures fare transparency, and provides both passengers and the company with a digital record of each trip.

ATOP might also take issue with TNVs’ driver incentives, rewards programs, and other marketing strategies that are designed to boost app usage but might indirectly discourage passengers from using traditional taxis.

In 2023, the LTFRB granted 1,100 slots for the application of TNVS in Iloilo City. Of the number, about 900 units are operational.

In the latest board resolution, the LTFRB opened 1,600 TNVS slots this year and another 50 slots near this year in Western Visayas.

The Board also adopted the same guidelines and documentary requirements for the filing of TNVS applications.

The Board allowed each Transportation Network Corporation (TNC) to register one hundred slots per day, which must be paid and filed within two days from the issuance of the assessment.

So far, the LTFRB-6 has accredited around 2,000 partner drivers from various Transport Network Vehicle Services across the region.
LTFRB’s Board Resolution No. 185-2022 states that additional TNVS slots are needed to “respond to the needs of modern commuters and address the large demand for transport services in expeditious and responsive ways” in the Visayas and Mindanao.

LTFRB reportedly used a data-driven taxi availability index (TAI) considering the island‘s population and tourist data./PN

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