LTFRB orders motorcycle hailing apps to explain alleged violation of exceeding rider cap
The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered the ride-hailing apps Angkas and Move It to explain their alleged violation of exceeding the government's allowed number of riders for its motorcycle taxi pilot study.
In two separate show cause orders dated Dec. 11, LTFRB chairman Teofilo Guadiz III, who also chairs the Motorcycle Taxi Technical Working Group (TWG) that monitors ride-hailing apps, said Angkas and Move It have five days to respond to the claims.
The companies must also appear at the LTFRB headquarters in Quezon City on Dec. 18.
The LTFRB has allowed only 45,000 motorcycle taxis in Metro Manila for its pilot study, which looks into its impact on traffic and commuter safety even as it aims to regulate such an emerging industry.
Three participants (Angkas, Joyride, Move It) were given 15,000 slots each.
But the LTFRB pointed out that Angkas has declared having 30,000 partner riders in its public pronouncements. (Last September, Angkas said it distributed 30,000 raincoats to its partner riders.)
"However, in August, the company announced signing a MOA with the [Social Security System] to cover approximately 50,000 Angkas partner bikers,” the agency said.
The SSS later on clarified that 30,000 partner bikers will be covered, according to a GMA News report.
As for Move It, the show cause order came on the heels of a Senate committee on public services hearing, during which the company admitted to having 27,000 partner riders.
It asked the company to explain why it “should not be suspended or removed from the motorcycle taxi pilot study or program.”
“Failure on the part of respondent to file its answer within the prescribed period and to attend the hearing of this case on the aforementioned date shall be considered a waiver on its part to be heard,” Guadiz said, adding that the case would be decided based on available records if Move It fails to appear before the TWG.
Guadiz has said that exceeding the cap undermines the integrity of the pilot study.
Angkas Chief Executive Office George Royeca confirmed receiving the show cause order, referring to the Senate hearing in question.
“This may have stemmed from the recent Senate hearing, during which it was alleged that Move It admitted to exceeding the caps," Royeca said. "Nonetheless, we acknowledge receipt of the show cause notice and are seeking clarification on the basis for its issuance and will address this matter in the appropriate forum."
“Rest assured, we take the time to train our drivers and implore the industry to keep to the same standards for the safety of the riding public,” he added.
Representatives from Move It have yet to issue a statement.
The motorcycle taxi pilot study in Metro Manila started in 2019. It was later expanded to allow 2,000 more motorcycle taxis each in Regions III and IV, including other operators like Para Xpress, Maxim, Dingdong, and GrabBike.
