The Department of Transportation (DOTr) has issued a directive to Transport Network Vehicle Service (TNVS) companies and motorcycle taxi platform providers to immediately cease the recruitment of new drivers and riders.
The order comes after government subsidy programs revealed that thousands of unauthorized, or “colorum,” units are currently operating on Philippine roads.
Acting Transportation Secretary Giovanni Lopez disclosed the discrepancy following the distribution of fuel subsidies to the transport sector. According to official regulatory lists, only 54,000 TNVS units are authorized with valid franchises.
However, data from the Department of Social Welfare and Development (DSWD) indicated that nearly 100,000 individuals applied for the cash aid.
“Sa TNVS, ang allowed, based on our list, is only 54,000. Yun yung may tamang prangkisa. Noong nagbigay ng ayuda, ang mga drivers that are asking for supposed ayuda lumagpas sa 54,000,” Lopez stated.
The situation is reportedly more severe in the motorcycle taxi sector. While the government-mandated cap is set at 78,000 riders, the list of beneficiaries seeking aid reached approximately 200,000, suggesting over 120,000 unauthorized riders are active.
Lopez took a firm stance against both the private platforms and government regulators, suggesting that such a large-scale violation could not have occurred without negligence or complicity.
“Sabi ko, mayroong kasalanan din dito ang mga government officials… kasi hindi pwedeng hindi niyo alam with such magnitude na napakalaki ang sobra, ang colorum ay either nagbubulag-bulagan ka o hindi nakikita,” he said.
President Ferdinand Marcos Jr. has ordered a formal investigation into these irregularities. In response, the DOTr issued a memorandum to the Land Transportation Franchising and Regulatory Board (LTFRB) to halt all onboarding activities, except for those with pre-existing valid franchises or provisional authorities.
Lopez emphasized that the current “wrong system” must be overhauled to protect the legitimate livelihood of authorized drivers and ensure public safety.
“Malinaw naman ang utos ng Pangulo. Dapat umaksyon tayo kaagad para hindi malagay sa alanganin ‘yung mas marami pang drivers at riders,” Lopez noted.
“Nararapat lamang na gawing legal ang kanilang onboarding. Hindi na dapat magpatuloy ang maling sistema, aayusin natin ito kaagad.”
The DOTr is currently evaluating potential sanctions and fines for ride-hailing apps found to have bypassed the authorized supply caps.