A group of Cebu taxi operators has filed a petition against officials of the Land Transportation Franchising and Regulatory Board (LTFRB), seeking to stop the implementation of a policy allowing additional electric vehicle (EV) taxi franchises in Metro Cebu.
The United Cebu Taxi Operators Association challenged Memorandum Circular No. 2026-037, which authorizes the issuance of 1,000 additional EV taxi slots in the region.
The group is asking the court to nullify the policy and suspend the processing of applications while the case is pending.
Named respondents include LTFRB Chairperson Vigor Mendoza and other agency officials.
Lawyer Rey Gealon, counsel for the taxi operators, said the circular was issued without sufficient consultation with existing operators, raising concerns over procedural due process.
“Asa mi mo lugar ang local taxi operators nga mo-comply man unta mi ubos sa EVIDA law pero wala mi hatagi og chance pag-comply so procedural due process giwala,” Gealon said.
He warned that the policy could significantly affect long-standing taxi businesses in Cebu.
“Ang padulngan nato ani kay ang pagpapas man sa local taxi industry dinhi,” he added.
Gealon also questioned the reported entry of foreign-backed companies in the EV taxi sector, saying local operators were placed at a disadvantage.
“Tan-awa bag-o lang gipagawasan og 600 ka franchise sa EV unya, pagkahibaw nato, foreign entity pa gyud,” he said.
The dispute stems from the government’s push to modernize public transport under the Electric Vehicle Industry Development Act (EVIDA), which encourages the use of electric vehicles in the transport sector.
Earlier this year, Vietnamese-backed transport firm Green and Smart Mobility (GSM) announced plans to expand its EV taxi operations in Metro Cebu, with more than 600 units initially proposed.
The proposal drew opposition from Cebu-based taxi operators, who argued that the additional units could affect existing drivers and worsen congestion in already busy urban areas.
During a public consultation held by the Cebu Provincial Government in January, GSM representatives said their entry was not meant to displace local operators.
“We are not here to compete. In fact, we are just filling in the blanks. We are here to collaborate with local partners,” lawyer Manuel Gordon, who represented GSM, said.
Despite these assurances, local taxi operators maintained their objection, saying the policy could undermine the viability of traditional taxi services in Cebu.
The LTFRB has previously denied allegations of preferential treatment, stating that EV taxi policies were already in place prior to GSM’s application to operate in the Philippines.
Photo by Kalami Cebu, via Proud Bisaya Bai
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