The City Government of Davao has taken action against Green and Smart Mobility Philippines Inc. (GSM), the operator of the country's pioneering all-electric taxi service, for launching operations without securing mandatory local permits.
LTFRB Davao: Company Was Duly Informed of Requirements
In a statement released on December 18, 2025, the Land Transportation Franchising and Regulatory Board–Davao Region (LTFRB-Davao) clarified its position. The agency confirmed that it had properly informed Green GSM of its legal obligations prior to the service launch.
"The company has been duly informed by the LTFRB of its responsibility to comply with all the requirements pertinent to its application," the LTFRB-Davao stated. The board emphasized that the company needs a Certificate of Public Convenience (CPC) to legally operate as an air-conditioned EV taxi service and must follow all regulations set by the Davao City government.
City Government Identifies Specific Permit Shortfalls
The regulatory issue came to light after the Davao City Government Unit flagged Green GSM Taxis following its official launch on December 15, 2025. The city urged the Land Transportation Office (LTO) and the LTFRB to investigate.
In its own statement dated December 16, 2025, the city government detailed the missing authorizations. Green GSM failed to obtain a business permit, locational clearance, and a building permit. Crucially, the operator also did not secure a necessary recommendation from the City Transport and Traffic Management Board (CTTMB) and the Sangguniang Panlungsod for its franchise application.
This step is mandated by the Comprehensive Transport and Traffic Code Ordinance of Davao City (Ordinance No. 0334-12). The local government reminded Green GSM that securing all necessary permits from relevant agencies is a fundamental legal obligation before starting any business in the city.
Compliance Reminder to All Transport Operators
The LTFRB-Davao used this incident to issue a broader reminder to all Public Utility Vehicle (PUV) operators and applicants. The agency stressed the importance of acquiring a CPC and fully complying with all applicable local requirements to operate legally in Davao City.
The office asserted that it consistently and faithfully reminds all PUV operators to respect and follow the regulations established by the city government.
Green GSM's Launch and Future in Davao
Green GSM Taxis, which uses a fleet of 500 VinFast electric vehicles, launched with the aim of providing a zero-emission transport alternative. The compact EVs, which arrived in Davao last October 2025, boast a 326-kilometer range and feature driver-assist technology and modern infotainment systems.
Dao Quy Phi, Managing Director of Green GSM Southeast Asia, had previously highlighted that the company chose Davao because of the city's emphasis on order, safety, and environmental responsibility. The service can be booked via a dedicated app, hotline, designated pick-up points, or street hailing.
The current situation places the future of this innovative transport service in Davao on hold, pending the company's full compliance with local and national regulations.
