The Land Transportation Franchising and Regulatory Board (LTFRB), under the guidance of DOTr Secretary Giovanni “Banoy” Z. Lopez, has issued a show cause order (SCO) against nine motorcycle taxi platform providers (MTPPs) in relation to the ongoing investigation into the discrepancies of the number of authorized ride-hailing services.
The issuance of additional SCOs brought to 30 the total number of ride-hailing companies being investigated over the illegal onboarding of TNVS and motorcycle taxis in their respective online platforms.
Each of the TNCs and MTPPs has its own app where customers could book a ride and based on the existing rules and regulations, only motor vehicle units with authority to operate issued by the LTFRB should be included or boarded in all those apps.
But during the distribution of fuel subsidy, the TNCs and MTPPs submitted lists with more than the number of units authorized in the LTFRB database, triggering an all-out investigation.
“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 Vigor Mendoza.
The LTFRB has been mandating TNCs and MTPPs to be transparent in their operation, with the agency even pushing for the mandatory access to the database of the TNC and MTPP apps as part of the supervision and control.
Legal limitations, however, prevented the LTFRB from doing so.
Despite the assurance and commitment from TNCs and MTPPs, the fuel subsidy distribution exposed that they are not being truthful, especially to the number of TNVS and motorcycle taxis being allowed to fetch passengers in their apps.
In the SCO for the nine MTPPs, they were asked to explain in writing why their authority to operate should not be suspended or revoked for the following violations:
1.Onboarding of riders and vehicles in excess of the authorized cap granted by this Board for operation as Motorcycle Taxi (MC Taxi) service;
2.Failure to maintain the original units onboarded in your platform, which have since operated, for the majority of the time, on another platform or have ceased to operate, in either case resulting in the abandonment of your service to the riding public.
The hearing is set on May 15, 2026.
