THE Department of Transportation (DOTr) has ordered an immediate suspension of onboarding for new Transport Network Vehicle Service (TNVS) and motorcycle taxi drivers after regulators uncovered widespread violations of fleet caps, prompting a broader probe into ride-hailing firms.
Transportation Secretary Giovanni Lopez issued the directive following findings that several Transport Network Companies (TNCs) and Motorcycle Taxi Platform Providers (MTPPs) had exceeded the number of drivers allowed under government regulations.
In a memorandum, Lopez instructed the Land Transportation Franchising and Regulatory Board (LTFRB) to stop all onboarding activities for new drivers and riders, except those already holding valid franchises or provisional authority.
The move came after President Ferdinand Marcos Jr. ordered an investigation into alleged abuses by ride-hailing firms, including their failure to comply with limits set on accredited drivers.
Authorities said discrepancies surfaced during the distribution of government cash aid to transport workers, when the number of individuals claiming benefits exceeded the official lists submitted by companies.
Subsequent checks revealed deeper irregularities, including the presence of so-called “ghost riders” — unregistered drivers included in subsidy records. The DOTr estimated about 30,000 questionable entries in four-wheel services and more than 200,000 in motorcycle taxi operations.
Lopez said some firms continued onboarding drivers despite already reaching their authorized caps, effectively bypassing LTFRB rules. He also flagged reports that applicants were being charged onboarding fees ranging from P25,000 to P90,000 even without proper permits.
The DOTr has likewise banned on-the-spot or same-day onboarding conducted without prior LTFRB approval, citing weak screening processes and compliance lapses.
Officials said the agency is evaluating possible sanctions, including fines and other penalties, against companies found to have violated regulations. The review also covers potential accountability among regulators who may have allowed the practices to continue.
Meanwhile, the DOTr and LTFRB are studying a possible amnesty program for so-called “tempo drivers” — those operating without full authorization — to help them regularize their status and continue earning a livelihood.
Lopez said the suspension forms part of efforts to restore order in the ride-hailing sector, enforce franchise limits, and safeguard both drivers and commuters from risks associated with an unregulated system.
