The Department of Transportation (DOTr) has directed transport network companies (TNCs) and motorcycle taxi platform providers (MTPPs) to stop accepting new driver and rider applications, following concerns over exceeding government-imposed limits.
Photo: XT7 Core/Unsplash
In a memorandum issued on April 30, 2026, Transportation Secretary Giovanni “Banoy” Lopez instructed the Land Transportation Franchising and Regulatory Board (LTFRB) to require these companies to “cease and desist from onboarding drivers,” except for those who already hold valid franchises or provisional authorities.
According to Lopez, the move addresses what the department described as “unfettered overboarding” by some platforms. This practice has reportedly led to violations of the approved supply caps for both transportation network vehicle service (TNVS) units and motorcycle taxi riders.
The issue was also raised during a recent Senate committee hearing, where Lopez warned that several companies may have gone beyond the limits set by the LTFRB. He also pointed to accountability not just among private operators, but within government agencies.
“Dapat may pananagutan talaga ang TNCs dito… May pananagutan din dapat ang LTFRB or DOTr, whether present or former officials, kasi hinayaan itong mangyari,” Lopez said during the hearing.
The directive follows an earlier order from President Ferdinand Marcos Jr. to investigate alleged irregularities in onboarding practices. One concern raised was the existence of so-called “tempo drivers”—individuals reportedly allowed to operate without permanent authorization under TNC platforms.
Department of Social Welfare and Development Secretary Rex Gatchalian noted that these drivers do not hold long-term licenses to operate within the system.
Lopez emphasized that the goal is to regularize the process and prevent further complications for drivers and riders already in the system.
“Malinaw naman ang utos ng Pangulo, dapat umaksyon tayo kaagad para hindi malagay sa alanganin ’yung mas marami pang drivers at riders. Nararapat lamang na gawing legal ang kanilang onboarding,” he said.
The memorandum also prohibits companies from conducting same-day or on-the-spot onboarding without prior approval from the LTFRB. In addition, the agency has been tasked with strengthening oversight and monitoring of onboarding procedures.
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