Addt’l MC taxis could slash PUV earnings

The Land Transportation Franchising and Regulatory Board (LTFRB) denied appeals to further expand the existing motorcycle taxi fleet in Metro Manila, reasoning this could shrink the earnings of current public utility vehicle (PUV) drivers.

LTFRB Chairman Teofilo Guadiz III said the agency will maintain the cap of 45,000 motorcycle taxis for Metro Manila.

Guadiz also chairs the technical working group (TWG) that regulates motorcycle-for-hire providers Angkas, JoyRide PH and Move It.

He argued it would be challenging for Metro Manila roads to add more motorcycle taxis, that would clog up an already congested region. Raising the number of motorcycle taxis in the metro would also counter the intent of government’s Public Transport Modernization Program (PTMP).

The PTMP intends to replace traditional jeepneys with modern, more efficient units. For 2025, the Department of Transportation has a budget of P1.6 billion for the PTMP.

Although subsidies are available, PUV operators and drivers will shoulder a major portion of the cost of a modern jeepney. Guadiz said their investments might go to waste if more competitors are allowed on the roads.

“We will review the fleet cap, but we are not inclined to add riders for Metro Manila. We have buses, jeeps and trains. We will do that for places outside Metro Manila where public transport is lacking,” said Guadiz.

“Our roads are becoming so crowded that it is causing accidents, and competition is becoming so tight that it may no longer be viable and profitable for the modernized jeepneys to come out. We need to support them. If you add motorcycle taxis, it would take away passengers for modernized jeepneys,” he said.

As for Move It, Guadiz said the LTFRB has suspended its order for the company to cut its fleet in Metro Manila by half. The agency will review the motion for reconsideration filed by Move It before it issues a final decision on the matter this month.

Earlier, LTFRB directed Move It to trim its fleet to 6,836 in compliance with a consensus agreed in 2020. The consensus limits the rider fleet in Metro Manila at 45,000, of which 23,164 is for Angkas and 15,000 for JoyRide.

The order also directs Move It to stop adding new riders for a year and halt operations in Cebu City and Cagayan de Oro City.

In response, Move It filed a motion for reconsideration, warning that the order would lead to job losses and drive thousands of riders back to the illegal market of habal-habal.

Currently, Move It said its fleet is made up of 14,662 riders in Metro Manila, which means the order would result in job losses for 7,826 Filipinos.

Move It added the order would cause unemployment in Cebu and Cagayan de Oro. The company expects job displacement for 14,000 riders if the order is followed.

Move It also urged the TWG to consider the difference in the periods from the time the rider fleet was computed in 2020 to the transport market now. Move It said more and more commuters have since shifted to motorcycle taxis to avoid heavy traffic.

Guadiz said Move It insists it was allowed to hire 15,000 riders in Metro Manila through an order issued by former Land Transportation Office chief Edgar Galvante.

As such, Guadiz is demanding Move It to produce that order in black and white once the LTFRB summons its executives in a hearing.

Move It has managed to accept more riders and raise its nationwide fleet following its merger with mobility giant Grab Philippines in 2022.