The Land Transportation Franchising and Regulatory Board (LTFRB) has intensified its investigation into the operations of ride-hailing firms, issuing show-cause orders to 30 transport network companies (TNCs) and motorcycle taxi platforms.
The agency's scrutiny stems from discrepancies identified during the recent distribution of fuel subsidies, where several firms reported vehicle numbers that surpassed their authorized limits.
LTFRB Chairman Vigor Mendoza II emphasized the need for these firms to clarify the situation, stating, "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."
Among the violations noted were onboarding more riders and vehicles than permitted, as well as failing to keep accredited units operational.
Hearing Scheduled for May 15
A hearing to address these issues is scheduled for May 15, as regulators aim to enhance transparency and oversight within the industry.
The LTFRB has sought greater access to the databases of ride-hailing firms to improve regulatory measures, though legal limitations have hindered this effort.
Concerns arose about potential misrepresentation of active transport network vehicle service (TNVS) units and motorcycle taxis by some companies.
Previously, the Department of Transportation (DOTr) halted the onboarding of new TNVS and motorcycle taxi drivers due to widespread rule violations.
The number of individuals claiming benefits exceeded the official lists submitted by companies.
Department of Transportation
Regulators uncovered issues including "ghost riders"—unregistered drivers listed in subsidy claims—and flagged firms that charged high onboarding fees without proper permits.
Officials are considering sanctions against firms that violated regulations and reviewing accountability among regulators for allowing such practices.
In a parallel effort, the DOTr and LTFRB are exploring an amnesty program for unauthorized drivers to help them regularize their status.