Cebu City Mayor Nestor Archival has put forward a significant proposal to halt the introduction of new taxi units for one year. This move directly addresses a planned influx of electric vehicles (EVs) into the city's already strained transport network.
A Pause for Assessment Amid Green Transition
While the Cebu City Government supports environmentally friendly initiatives, Mayor Archival emphasized the need for caution. He announced the proposal during a press conference on Monday, December 22, 2025. The mayor argues that regulators require time to properly study how adding hundreds of new cars would affect the city's worsening traffic congestion and the livelihoods of existing taxi operators.
"We don't know how long it will last, but I think it will be the best," Archival stated. He revealed that he had discussed the matter with Vice Mayor Tomas Osmeña, suggesting a freeze of at least one year on granting new franchises. This period would allow the Land Transportation Franchising and Regulatory Board (LTFRB) and local authorities to evaluate the true carrying capacity of Cebu's streets.
Targeting Specific EV Rollout, Advocating Replacement
The proposal emerges amidst a specific controversy involving Green and Smart Mobility (GSM), a Vietnam-based ride-hailing firm. GSM plans to deploy 600 electric taxis in Metro Cebu. Cebu Governor Pamela Baricuatro has already expressed opposition to this rollout, citing regulatory and traffic concerns.
Mayor Archival, known for his environmental advocacy, clarified that the city is not against EV technology itself. His strategy focuses on replacement over addition. Instead of opening new slots that increase the total number of vehicles, he proposes integrating EVs through the natural expiration of current licenses. As older gas-powered units retire, they should be replaced by electric models.
"During the renewal of franchises, if possible, I would like to request that EVs be used," Archival said. He plans to formally ask the LTFRB and the Land Transportation Office to make EV adoption a requirement during the renewal process for existing franchises.
Regulatory Hurdles and Potential Implications
The discussion on the moratorium coincides with procedural delays for GSM. The LTFRB has suspended the firm's provisional authority to deploy the 600 units, pending a public consultation. A franchise hearing originally set for December was moved to January 15, 2026.
LTFRB 7 Acting Chief Transportation Officer Edwin Antepuesto noted that while GSM published its notice of hearing on December 22, it failed to meet the mandatory five-day period required before the hearing could proceed.
If the moratorium is accepted, commuters will not see an increase in available taxis soon, which limits options but may prevent further clogging of major roads. For existing operators, the freeze offers temporary protection against sudden market saturation by a large, foreign-backed competitor. The LTFRB has yet to issue a formal response to Mayor Archival's proposal.
