The Department of Transportation (DOTr) has ordered transport network companies (TNCs) and motorcycle taxi platform providers (MTPPs) to temporarily stop accepting new drivers and riders amid concerns over oversaturation and regulatory breaches in the sector.
Transportation Secretary Giovanni Lopez said the suspension was prompted by monitoring data showing that several operators have exceeded their authorized fleet and driver limits, leading to the emergence of unregulated “temporary” or informal drivers operating outside approved systems.
Under a directive issued to the Land Transportation Franchising and Regulatory Board (LTFRB), the onboarding of new Transport Network Vehicle Service (TNVS) drivers and motorcycle taxi riders is suspended, except for those already holding valid franchises or prior authorization.
The order also prohibits same-day or on-the-spot onboarding practices, which regulators say have contributed to the proliferation of improperly documented drivers entering the system without full compliance checks.
Authorities said the move is part of a broader effort to address alleged industry abuses flagged under a separate directive from the national government, including concerns over compliance with franchise limits and passenger safety standards.
The DOTr is also studying possible sanctions, including fines and penalties, for companies found to have exceeded their approved driver or rider caps.
At present, major motorcycle taxi platforms operating in the country include Move It, Angkas, and JoyRide, while TNCs include Grab and InDrive.
Alongside the suspension order, the LTFRB has recently accredited several additional transport network companies to expand commuter options and improve service coverage. These include firms such as Angkas Technologies, GoCab Corp., Hail Transport Inc., and other local transport and technology operators.
Officials said the ongoing review aims to balance the growing demand for ride-hailing and motorcycle taxi services with the need for stricter regulation, safer onboarding processes, and better enforcement of existing franchise rules.