Firms decry P43.47-B losses to heavy traffic
The local courier, express and parcel delivery companies are losing about P43.47 billion every year because of traffic congestion that delays their riders on the roads, according to Private Express and Messengerial Association of the Philippines (Pemap).
Pemap president Alma Rias, during the Philippines Logistics Summit 2025 last week, shared how riders lose about 18.75 percent of their productivity daily because of heavy traffic, translating to about 59 days of no work in a year.
She explained in the local delivery sector, riders are usually paid daily plus incentives for additional work. Others, she added, are paid per shipment.
Rias stressed given the minimum wage in Metro Manila is P645, the annual loss will be equivalent to P38,055 per rider.
In the Philippines, the Pemap official noted that about one in 14 motorcycle riders are also in delivery work. This means about 1.14 million out of the 16 million motorcycle owners are potentially affected, she said.
In summary, the P38,055 loss incurred by 1.14 million riders equals an annual loss of P43.47 billion for the sector. “This figure underscores a harsh reality,” she said.
“Our roads, especially in urban sectors like Metro Manila, Cebu and Davao, are congested to the point of paralysis,” Rias added.
In Metro Manila, she said there are 140 to 160 vehicles or more per kilometer (km), showing that the urban roads are overloaded. Rias said Japan has only 70 to 90 vehicles per km, which signifies “efficient use” of roads.
She added companies can employ technology to optimize the routes of the riders so they can temper losses because of the traffic.
Rias pointed out the companies deal with the Land Transport and Franchising Regulatory Board (LTFRB), Land Transportation Office, Department of Trade and Industry and local government units when securing licenses and permits, raising the need for a one-stop shop instead.
Still, Rias is optimistic about the prospects of the industry this year.
“As we look ahead of 2025, the Philippine e-commerce landscape is experiencing unprecedented growth, presenting significant opportunities for the logistics sector, particularly in last-mile delivery,” she said.
Move It woes
Meanwhile, the Department of Transportation (DoTr) has deferred the implementation of the order of its technical working group (TWG) on motorcycle taxi compelling Move It to reduce by more than half its current fleet and to stop operations in Cebu and Cagayan de Oro City.
According to Transportation Secretary Vince Dizon, Move It, one of the three transport network companies allowed to participate in the ongoing pilot study of MC taxis in Metro Manila, already filed a motion for reconsideration on the order.
“It will be status quo for now. The LTFRB decision will not be implemented while the motion for reconsideration of Move It (filed on May 1) is being studied. So there will be no action to be taken by the parties until the motion is resolved,” Dizon said in a statement.
LTFRB chair Teofilo Guadiz serves as the head of the TWG on MC taxi.
In an earlier order issued by the DoTr TWG on MC taxi, Move It “is found to have exceeded its authorized rider cap allocation, and failed to comply with the mandatory reporting requirements on rider activation, deactivation, and reactivation, as prescribed under the motorcycle taxi pilot program.”
The order was signed by Guadiz and LTO chief Vigor Mendoza II as chair and vice chair of the TWG on MC taxi, respectively.
“These violations have resulted in a significant number of motorcycle taxis operating beyond the approved threshold, raising substantial concerns regarding regulatory compliance, safety oversight, and the integrity of the pilot program,” the TWG said.
The DoTr TWG allowed Move It, a subsidiary of Grab Philippines, to continue its operations, but it is directed to impose an immediate and temporary moratorium on the onboarding of new riders for one year.
It also ordered Move It to “right-size” its fleet to 6,836 and submit a verified master list within 30 days upon receiving the order. The TWG noted the company currently has 14,662 riders, which clearly exceeded its rider allocation by 7,826.
14,000 riders at stake
In an earlier news conference, Move It general manager Wayne Jacinto said the TWG order would displace more than 14,000 of their riders in the country.
“We’re asking for fairness, that our riders won’t lose their livelihood, and that our government would listen to us. We hope our riders will not be displaced,” he added.
United Motorcycle Taxi Community representative Andy Delos Santos said many affected motorcycle riders were worried about possibly losing their source of livelihood.
