LTFRB summons 9 motor taxi firms for discrepancy in allowed ride-hailing units

The Land Transportation Franchising and Regulatory Board (LTFRB) has issued show cause orders (SCOs) against nine motorcycle taxi platform providers (MTPPs) as part of the ongoing probe of discrepancies in the number of authorized ride-hailing services.

This brings to 30 the total number of ride-hailing companies under investigation for the alleged illegal onboarding of transport network vehicle services (TNVS) and motorcycle taxis in their online platforms.

The nine MTPPs were ordered to explain in writing why their authority to operate should not be suspended or revoked for the following violations:

• Onboarding of riders and vehicles in excess of the authorized cap granted by the LTFRB for operation as motorcycle taxi (MC taxi) service; and
• Failure to maintain the original units onboarded in the platform which have since operated on another platform or have ceased to operate, resulting in the abandonment of service to the riding public.

The hearing is set on May 15.

In a statement, the LTFRB explained that the transport network companies (TNCs) and MTPPs each have their own app where customers can book a ride.

Based on the existing rules and regulations, only motor vehicle units with an authority to operate issued by the LTFRB should be included or boarded in all those apps.

During the distribution of fuel subsidies, some TNCs and MTPPs submitted lists with more than the number of units authorized in the LTFRB database, triggering the investigation.

READ: Over 50,000 TNVS, MC taxi drivers found ‘colorum’ during aid distribution

“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 chair Vigor Mendoza II.

The LTFRB earlier told TNCs and MTPPs to be transparent in their operations.

The agency even pushed for the mandatory access to the database of the TNC and MTPP apps as part of the supervision and control, but legal limitations prevented the LTFRB from doing so.

The LTFRB lamented that the fuel subsidy distribution revealed that some TNCs and MTPPs are not being truthful about the number of TNVS and motorcycle taxis being allowed in their apps to fetch and ferry passengers. — JMA, GMA News