A major taxi operators' group in Cebu is pushing back against a government plan to introduce hundreds of new electric vehicle (EV) taxis into the metropolitan area, warning of an oversaturated market and unfair competition.
Operators Challenge LTFRB's Provisional Authority
The United Cebu Taxi Operators Association (UCTOA) has formally opposed the Land Transportation Franchising and Regulatory Board's (LTFRB) decision to grant a 90-day provisional authority to Green and Smart Mobility (GSM). The Vietnam-based ride-hailing service is set to begin operations on Friday, December 19, 2025, with a fleet of 600 electric taxis.
In a phone interview on Wednesday, December 18, UCTOA Chairman Richard Cabucos argued that the combined traditional and app-based booking system planned by GSM would directly threaten the livelihoods of existing franchise holders. He criticized the use of a provisional authority for such a large-scale rollout, noting that current operators have endured a lengthy and costly process to secure their franchises.
Key Concerns: Drivers, Infrastructure, and Traffic
Cabucos outlined several critical issues with the planned deployment:
Driver Shortages: GSM's aggressive hiring campaign is already drawing drivers away from local operators, depleting their available labor pool.
Infrastructure Questions: Serious concerns remain about the long-term durability of electric vehicles and the current lack of sufficient charging infrastructure in Cebu to support a large EV fleet.
Traffic Impact: Introducing 600 new taxis into a market that already has approximately 6,200 traditional taxis and 2,000 Transport Network Vehicle Service (TNVS) units is predicted to worsen Metro Cebu's already severe traffic congestion.
Background and Proposed Alternatives
The LTFRB's move is based on Memorandum Circular No. 050, issued on November 18, which created additional taxi slots exclusively for electric vehicles. The board approved 8,000 units for Metro Manila and 600 each for Metro Cebu and Metro Davao.
GSM intends to use the VinFast VF 5 model, a compact electric vehicle with a stated range of 326 kilometers per charge.
Instead of approving new slots for an external player, Cabucos urged the LTFRB to prioritize helping existing operators replace their older units with EVs or hybrid vehicles. As a compromise, he suggested that if the rollout must proceed, GSM should be limited to a pure ride-hailing app model similar to other TNVS providers, rather than operating with a traditional metered taxi franchise.
