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 driver and rider quota violations among Transport Network Companies (TNCs) and Motorcycle Taxi Platform Providers (MTPPs). The issue could have led to as much as PHP 2.7 billion in government cash assistance payouts to what the industry describes as “ghost” drivers and riders.

Because of these discrepancies, the Land Transportation Franchising and Regulatory Board (LTFRB) has summoned 30 ride-hailing companies to explain the apparent violation of driver and rider quotas on their platforms.

“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 has been requiring TNCs and MTPPs to ensure transparency in their operations, including pushing for access to platform databases as part of its regulatory supervision and control functions. However, the agency admits that legal limitations have prevented it from fully implementing such access.

LTFRB Chairman Atty. Vigor Mendoza II

Despite earlier assurances from TNCs and MTPPs regarding compliance, recent fuel subsidy distribution data reportedly revealed huge discrepancies in the actual number of Transport Network Vehicle Service (TNVS) units and MC taxis operating under their platforms.

In separate Show Cause Orders (SCOs) issued to nine MTPPs, the LTFRB directed them to explain in writing why their authority to operate should not be suspended or revoked over alleged violations, including the onboarding of riders and units beyond the authorized cap granted by the Board for motorcycle taxi operations, as well as the failure to maintain originally registered units that have either shifted to other platforms or ceased operations, effectively affecting service availability to the riding public.

The hearings are scheduled on May 15.