Transportation Secretary Giovanni Lopez has ordered a stop to the onboarding of new drivers and riders by ride-hailing and motorcycle taxi companies.
The decision came after data showed that several companies exceeded their allowed number of drivers, leading to the spread of unregulated “colorum” operators.
Under a memorandum, the Land Transportation Franchising and Regulatory Board (LTFRB) was directed to suspend all new registrations for Transport Network Vehicle Services (TNVS) and motorcycle taxis. Only applicants who already have valid franchises are allowed to proceed.
Same-day or on-the-spot onboarding without LTFRB approval is also banned.
Lopez said the move follows a presidential order to address industry violations and protect drivers and riders. He added that the government will fix the system and ensure proper regulation.
Authorities are also considering penalties and fines for companies that exceeded onboarding limits.
Major motorcycle taxi operators affected include Angkas, Move It, and JoyRide. Leading ride-hailing firms include Grab and inDrive.
Meanwhile, the LTFRB has accredited 14 new transport network companies to help expand commuter options, despite the temporary suspension on new driver onboarding.
