The launch of 600 new electric taxis in Metro Cebu has been suspended. This decision follows strong objections from Cebu's provincial leadership, who question the fairness of the licensing process for the new fleet.
Governor Halts Rollout, Demands Fair Process
Cebu Governor Pamela Baricuatro confirmed the suspension on Friday, December 19, 2025. The action came after a meeting with the Land Transportation Franchising and Regulatory Board (LTFRB). The pause directly affects the planned fleet managed by Green and Smart Mobility (GSM), a Vietnamese-backed operator.
Governor Baricuatro emphasized that her opposition is not against the electric vehicle technology itself. Instead, she is concerned about the administrative procedure. She worries that granting a provisional authority to GSM could unfairly sideline existing taxi operators who have faithfully followed all regulations for years.
"Issuing provisional authority risks unfairly displacing our current taxi operators who have complied with the rules, paid dues, and trusted the system to deliver orderly, safe service," Baricuatro stated on Facebook.
Public Consultation Set for January 2026
In response to the governor's concerns, the LTFRB and GSM agreed to suspend the rollout. This will allow for a period of public dialogue. A major consultative meeting is scheduled for January 5, 2026. It will bring together commuters, urban planners, traffic authorities, and taxi associations.
The LTFRB released a statement explaining the move. "In deference to Governor Pamela Baricuatro’s concerns, GSM has agreed to defer the launch of its operations and pursue genuine consultation with the public," the board said. The talks will focus on the social, economic, and environmental impacts of introducing the electric taxi fleet.
Beyond fairness, local officials have raised practical issues. Baricuatro warned that adding 600 new vehicles without a comprehensive plan could worsen Metro Cebu's already severe traffic congestion and parking problems.
National Green Goals Clash with Local Realities
This delay in Cebu presents a challenge to national policy. The Philippine government is actively promoting electric vehicles under Republic Act 11697, the Electric Vehicle Industry Development Act of 2022. This law mandates the integration of EVs into public transport fleets to cut greenhouse gas emissions.
The situation highlights a growing tension between national green energy mandates and local economic concerns. Richard Cabucos, chairman of the United Cebu Taxi Operators Association, echoed the governor's sentiments. He criticized the 90-day provisional authority given to GSM, noting that existing operators underwent a much longer and more expensive franchising process.
While Cebu's project stalls, other Philippine cities are moving forward. Grab began operating electric taxis in Metro Manila in June 2025. In December 2025, Davao City welcomed an all-electric fleet from GSM with support from local officials.
The outcome of the January 5 consultations will be crucial. It will determine how Cebu balances the national push for cleaner transportation with the need to protect existing livelihoods and manage urban infrastructure. The resolution may serve as a key case study for other provinces navigating the complex transition to modern, sustainable public transport.
