LTFRB summons 9 ride-hailing firms for exceeding cap on accredited drivers
The Land Transportation Franchising and Regulatory Board (LTFRB) said on Tuesday that it has summoned nine ride-hailing companies that offer motorcycle taxi services for allegedly hiring more riders than the number authorized by the agency.
In a statement, the LTFRB said it has issued show-cause orders to nine motorcycle taxi platform providers (MTPPs) that were asked to explain why their authority to operate should not be suspended or revoked for onboarding more riders without its approval.
The hearing with the nine companies was set on May 15.
The MTPPs are also being summoned for failing to maintain the original units they accredited on their platforms, as these vehicles were either found to be no longer in use or already being operated by another company.
According to the LTFRB, this resulted in the abandonment of their services to the riding public.
Thirty and counting
The transport board has so far issued summonses to a total of 30 ride-hailing companies suspected of illegally onboarding transport network vehicle service drivers and motorcycle taxi riders.
The LTFRB explained that for each transport network company (TNC) and MTPP, only the vehicles it authorized to operate should be onboarded.
It noted, however, that during the government’s recent distribution of the one-time P5,000 fuel subsidy for public utility vehicle drivers, the list of beneficiaries submitted by some TNCs and MTPPs showed that the number of their accredited drivers exceeded the limit authorized by the LTFRB.
As a result, the Department of Transportation has ordered an “all-out investigation” of the “bloated” list of beneficiaries.
The LTFRB said it has ordered ride-hailing companies to be more transparent in their operations, adding that it is also seeking mandatory access into the database of TNCs and MTPPs, although there are some legal limitations to be considered.
“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,” LTFRB Chair Vigor Mendoza II said.
