Competition vs cap: Why 19 platforms can’t fix Manila’s ride-hailing crisis

Conclusion

MANILA, Philippines — Policy moves ahead

For commuter advocates, the surge in demand is primarily due to the “large shortfall and low quality of service of our public transport system,” according to Reycel Hyacenth Bendaña, national coordinator at Move As One Coalition.

“TNVS fills critical gaps where public transport is either unreliable or completely absent, such as late at night, in first-and-last-mile travel, and on routes where buses, jeepneys or trains do not frequently pass. TNVS offers a safer and more accessible option for pregnant women, persons with disabilities, elderly commuters and individuals with health or safety concerns who would otherwise have to endure our overcrowded, unpredictable and physically demanding commute system,” she said in an emailed response.

The group asserts that the new TNVS platforms merely redistribute existing demand and that “competition alone cannot make TNVS more affordable or efficient” without proper integration with public transport.

“The long-term solution must still be a public transport system that is safe, reliable and accessible for all, whether you are disabled, elderly or sick,” Bendaña added.

He urged the LTFRB to reassess the current supply cap using real, granular trip data and set clear affordability guidelines on surge pricing.

At the regulatory level, LTFRB continues to manage TNVS slot issuances through formal board resolutions, reflecting a cautious approach that weighs commuter access, market competition and the risk of oversupply.

LTFRB Board Resolution 057, Series of 2024, authorized additional TNVS slots in the Visayas and Mindanao regions, following earlier slot releases in 2022 and 2023 and the subsequent postponement of the planned 2024 issuance.

LTFRB chairman Teofilo Guadiz III announced in February 2025 that the board would revisit the TNVS fare matrix, which has not undergone major revisions since 2019, as it evaluates petitions and reassesses operational cost assumptions for ride-hailing services.

Market still in motion

The rapid accreditation of new TNCs highlights a market in transition, where the surge in platform competition and expanded commuter choices remains limited by the LTFRB still-unactivated vehicle supply cap.

The challenge for regulators is to activate enough units to meet public demand without worsening traffic congestion or reducing driver incomes to unsustainable levels.

As the LTFRB reviews fares and reassesses supply rules, the future of the TNVS sector will depend on how effectively the agency can convert accredited slots into active vehicles.

Move As One Coalition advocates that TNVS must “complement, and not replace, a public transport system

that is safe, humane and for all.”

If government reforms succeed in aligning supply with demand and ensuring fair compensation for drivers, the Philippines could see a more stable and efficient ride-hailing system.

However, if structural gaps remain unaddressed, competition may continue to grow on paper while commuters and drivers face the same longstanding limitations in daily transportation.

(Heaven Grace Peralta is a fourth-year BA Journalism student from the Polytechnic University of the Philippines. She produced this report as part of her internship at The STAR).