Report: LTFRB slashes Metro Manila TNVS units by 2/3

IMAGE Land Transportation Franchising and Regulatory Board

Yup, the saga between the Land Transportation Franchising and Regulatory Board (LTFRB) and ride-sharing companies like Uber and Grab isn't over yet. As a matter of fact, the developments continue to shock and awe. According to a Memorandum Circular posted by CNN Philippines on its Facebook page, the government organization is placing a cap on TNVS units allowed to operate.

The LTFRB, after thorough deliberation with the Department of Transportation, has decided to set a common supply base for TNVS. In Metro Manila, the limit is set at 45,000. In Cebu, it's 500, while Pampanga will be restricted to just 200 cars. To put those numbers into context, LTFRB spokesperson Aileen Lizada estimates that the number of TNVS units in Metro Manila right now is around 125,000. 

This latest development comes after the LTFRB formed a technical working group and consulted with the concerned parties in order to formulate the right policies. But as to how exactly they arrived at these allocations per region isn't explicitly stated in the document. 

The question now for commuters is, how will this move affect the prices of Uber and Grab? Dynamic pricing, after all, fluctuates based on supply and demand. Any thoughts or violent reactions? Share them below.