The Department of Transportation (DOTr) has suspended the onboarding of new transport network vehicle service (TNVS) drivers and motorcycle taxi riders as it seeks to curb the excessive hiring of drivers beyond the government-mandated limit.
In a memorandum signed on April 30, Acting Transportation Secretary Giovanni Lopez ordered the Land Transportation Franchising and Regulatory Board (LTFRB) to direct TNVS and motorcycle taxi firms to cease onboarding drivers.
The order covers the traditional onboarding process, as well as on-the-spot and same-day onboarding activities, unless prior approval is secured from the LTFRB.
Companies with valid franchises or provisional authorities, however, are exempt from the policy and are still allowed to accept new drivers.
Lopez said he had earlier been instructed by President Marcos to investigate certain ride-hailing firms for exceeding the maximum number of drivers or riders allowed to be onboarded.
Based on initial findings, he said some companies have already exceeded the prescribed limits by the LFTRB.
“The President’s directive is clear: we must act immediately to prevent putting more drivers and riders at risk. Their onboarding process must be made legal,” he said in a statement.
The DOTr is now evaluating potential penalties and fines for TNVS and motorcycle taxi firms found to have violated the onboarding limits.
The DOTr earlier warned that these companies would be held accountable for the bloated number of riders and drivers after discovering the figures through the cash relief assistance provided by the government amid the ongoing national energy emergency.
The Department of Social Welfare and Development (DSWD) said around 185,000 TNVS drivers and 293,000 motorcycle taxi riders were submitted by ride-hailing firms for the assistance program.
Lopez said this is well beyond the current cap of 78,000 TNVS drivers, as well as the estimated cap of more than 45,000 motorcycle taxi riders.
During a recent Senate hearing, Lopez said current and former officials of the DOTr and LTFRB should also be held responsible for the excessive onboarding.
Despite this, he said drivers and riders operating without proper authority or under the so-called “tempo status” should still be extended the same relief assistance.