Show Cause Orders issued by LTFRB to 30 TNCs, MTPPs
If there’s a silver lining in the ongoing oil crisis tied to the US-led conflict in the Middle East, it is the exposure of the massive rider quota discrepancies within the ride-hailing industry.
What began as the government’s fuel subsidy distribution program uncovered what industry insiders describe as “ghost” riders and drivers, potentially involving as much as PHP 2.7 billion in payouts. Data presented by the Department of Social Welfare and Development (DSWD) showed that some ride-hailing platforms exceeded their authorized caps by as many as 100,000 riders.
The issue also exposed apparent overboarding practices among Motorcycle Taxi Platform Providers (MTPPs), with some platforms allegedly onboarding riders beyond the cap authorized by regulators.
Because of these discrepancies, the Land Transportation Franchising and Regulatory Board (LTFRB) summoned 30 ride-hailing firms, including several motorcycle taxi operators, to explain the apparent violations.
“They have a lot of explaining to do on this matter, and we will make sure that those who defied our regulations will pay the price,” said LTFRB Chairman Atty. Vigor Mendoza II.
The LTFRB said it has long been pushing for greater transparency from Transport Network Companies (TNCs) and MTPPs, including access to platform databases as part of its supervision and regulatory functions. However, legal limitations have prevented the agency from fully implementing such measures.
Despite earlier assurances from the platforms regarding compliance, the fuel subsidy data revealed major discrepancies in the actual number of active TNVS units and motorcycle taxi riders operating under their systems.
In separate Show Cause Orders issued to 9 MTPPs, the LTFRB directed them to explain why their authority to operate should not be suspended or revoked over alleged violations, including onboarding riders and units beyond the approved cap for motorcycle taxi operations.
The agency also questioned the failure of some operators to maintain their originally registered riders and units, with some allegedly transferring to other platforms or ceasing operations altogether, affecting service availability to the commuting public.
Hearings are scheduled on May 15.
