Quick Read:

The abbreviation TNC stands for Transportation Network Companies. This is a new term that describes an increasingly popular method of finding personal travel, fast. TNCs provide users with transportation through an online platform that connects them to drivers that are nearby. Examples of such companies include Uber and Lyft.

This term is relatively new, having only come about in recent years, following the development of relevant online technology. TNCs have been steadily increasing in number due to increased demand, based on the ability to book a taxi via an app and the ability to register a debit card to the account.

To learn more about Transportation Network Companies, check out our FAQ below:

How do TNCs work?

Each travel network company will differ slightly in the services that they offer, but generally, they will all use software to connect users with a driver. In order for this to work, the TNC will recruit a driver that passes the company’s requirements on training, vehicle specifications and background checks. The driver will then download the software (usually a smartphone app) in order to receive pickup requests from the customer.

How do TNCs differ from traditional taxi companies?

The main difference between a traditional taxi company and a TNC is that drivers for transportation network companies will provide their own vehicle that meets the requirements.What’s more, the efficiency of TNCs cannot be understated. Billing can be handled by pre-registered bank cards which makes paying for travel simple. Users of the app will also be kept informed in real time when their car will arrive using GPS Capabilities. It really is a no-brainer when organising business travel.

What are the pros and cons of TNCs?


  • TNCs often cost less than a traditional taxi service, unless surge pricing is in effect.
  • TNC apps are widely accessible and easy to use. They are streamline to make travelling as easy as possible, and they even provide important information such as the driver’s registration number, contact information and the driver’s ETA.
  • Customers can pay without needing to present a bank card or cash. Users can simply use a pre-registered card to pay for a journey at the tap of a button.
  • Service is just as good as a traditional taxi service due to the ability to rate both drivers and customers after the ride.


  • Costs of TNCs may be higher at times just to surge pricing. This is most prevalent at peak times and can be avoided by travelling during less busy periods.
  • During busy periods, it may be difficult to book a trip at all.