Hinolan, Sean Francis E.

Transportation Law

2019400212 2F

Assignment # 2
Transport Network Companies (TNC) vs. Transport Network Vehicle Services (TNVS)

House Bill No. 1260 drafted by the House of Representatives defines Transportation Network
Companies (TNC) as corporations, partnerships, sole proprietorships, or other entities that enable
passengers to pre-arrange transportation with a driver exclusively through a digital network, with
corresponding compensation. In most current settings, this involves the use of a mobile app
which can be downloaded in majority of smartphones. As broad as the definition may be, TNCs
do not comprise of entities that provide:

a. Street-hail taxicab services;

b. Limousine or other car services arranged by a method other than through a digital

network;

c. Shared expense carpool or vanpool arrangements not arranged via TNC digital

Network; or

d. A type of ride service for which:

i. The fee received by the driver does not exceed the driver’s costs of providing

the ride; or

ii. The driver receives a fee that exceeds the driver’s costs associated with

providing the ride but makes not more than three round-trips per day

between the driver’s or passenger’s place of employment and the driver’s

or passenger’s home.

While in the same bill, Transportation Network Vehicle Services (TNVS) was defined as the
transportation of passenger/s between points chosen by the passenger/s, pre-arranged through the
use of a digital network.

The main difference between the two is that TNCs refer to entities, while TNVSs refer to the
means by which these entities perform transportation services and transact with their customers.