Transport groups in Cebu have formally raised strong objections against a plan to deploy hundreds of new electric taxis in the metro, setting the stage for a major regulatory decision. The opposition was officially lodged during a crucial franchise hearing held on Thursday, January 15, 2026.
Constitutional Challenge and Ownership Concerns
At the heart of the dispute is the question of foreign ownership. Legal representatives for several local taxi operators argued that the applicant, Green and Smart Mobility (GSM) Philippines Inc., is constitutionally barred from operating a public utility. Hayde Delos Reyes-Del Rama, counsel for four local operators, emphasized that the 1987 Constitution requires public utility operators to be at least 60% Filipino-owned.
"GSM is 100 percent foreign-owned. What is required in the Constitution should be at least 60 percent Filipino-owned," Del Rama stated in an interview. She cited specific legal provisions, including Article XII, Section 11 of the Constitution, the Public Service Act, and Republic Act No. 11659, to support the position that the company's ownership structure disqualifies it from running a taxi service.
Alleged Lack of Public Consultation
Beyond ownership, opponents criticized the process leading to the application's approval. Lawyers argued that mandatory steps were skipped. Terence Fernandez, representing the United Cebu Taxi Operators Association Inc., claimed that Memorandum Circular No. 2025-050—which authorized the 600 electric taxi slots—is void due to a lack of proper public consultation.
Fernandez pointed out that the Department of Transportation's own rules stress the need for stakeholder talks and alignment with the Electric Vehicle Industry Development Act. He argued existing operators were not given a required chance to provide input before the application moved forward.
Traffic and Market Saturation Fears
The practical impact on Cebu's roads formed another major pillar of opposition. Fernandez warned that introducing 600 additional taxi units would adversely affect current operators and worsen Metro Cebu's already severe traffic congestion. "Metro Cebu’s traffic conditions can no longer accommodate an additional 600 taxi units," he asserted.
This view was echoed by Gregory Perez, chairperson of Piston Cebu, who contended that Cebu already has sufficient transport vehicles that prioritize local needs over those of an international company.
GSM's Defense and Awaiting Decision
In response to the criticisms, GSM's legal counsel, Manuel Gordon, defended the application. He maintained that the company filed for its certificate of public convenience in full compliance with government requirements. Gordon stressed that the zero-emission fleet addresses a genuine public necessity and convenience for the riding public.
The regulatory body now holds the decision. Eugenio Ibo Jr., officer-in-charge of the Land Transportation Franchising and Regulatory Board (LTFRB) Region 7, indicated that a ruling on whether to approve or deny GSM's application will be made within five days after the January 15 hearing.
