The City Government of Davao has issued a stern warning against Green GSM Taxis, the Philippines' pioneer in all-electric taxi services, for commencing operations without securing mandatory local permits. This move casts a shadow over the high-profile launch of the eco-friendly transport service in the city.
Davao's Stance: Support for Green Tech, Zero Tolerance for Violations
In an official statement released on December 16, 2025, the local government unit (LGU) detailed the specific regulatory shortcomings. Authorities confirmed that Green GSM has not obtained a crucial recommendation from the City Transport and Traffic Management Board (CTTMB) and the Sangguniang Panlungsod for its franchise application with the Land Transportation Franchising and Regulatory Board (LTFRB).
This step is a legal requirement under Davao City's Comprehensive Transport and Traffic Code Ordinance (Ordinance No. 0334-12). The LGU emphasized that the company, which operates a fleet of VinFast electric vehicles (EVs), failed to secure a business permit, locational clearance, and building permit before launching.
"While the City Government of Davao supports environmentally cleaner transportation, it will not tolerate any company that blatantly disregards local ordinances," the city government declared. It added that until all requirements are met, Green GSM's activities will be considered illegal.
A Clash Between Launch Celebrations and Regulatory Warnings
This regulatory crackdown comes just a day after Green GSM Taxis officially began services in Davao City on December 15, 2025. The company had celebrated its launch, with Green GSM Philippines expressing gratitude for a "warm welcome" from Dabawenyos on social media.
In a press release, Dao Quy Phi, Managing Director of Green GSM Southeast Asia, stated that Davao City places a strong emphasis on order, safety, and environmental responsibility. He positioned the service as a reliable, zero-emission option aligned with the city's values. The launch event was reportedly attended by LTFRB–Davao Regional Director Nonito Llanos and other local government representatives.
Despite the festive launch, the city government has now urged the Land Transportation Office (LTO) and the LTFRB to investigate the company's operations. As of the latest reports, Green GSM has not issued any public statement addressing the permit allegations.
Public and Economic Implications
The situation has sparked reactions from local residents. Some citizens, like Romel Pecajas, commented on the city's statement, saying they would not use the service until all permits are secured. Others, including Ken Martin, noted that compliance is essential to ensure fairness to other transportation operators in the city.
Economically, the stakes are high. The Davao City Investment Promotions Center (DCIPC) had projected that the electric taxi operations could generate around 20,000 initial jobs, potentially scaling up to 70,000 once fully operational. The service involves 500 VinFast VF 5 model vehicles that arrived in Davao last October, bookable via an app, hotline, or street hailing.
The unfolding scenario presents a critical test for balancing innovation and regulation. Davao City's administration is making it clear that its support for sustainable development and green technology must walk hand-in-hand with strict adherence to local laws and processes.
