LTFRB halts issuing premium taxi franchises

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) has suspended the acceptance of franchise applications for premium taxis and issuance of the franchises nationwide following allegations that some operators were engaging in illegal activities.

In a Dec. 13 memorandum circular, the LTFRB said it received reports that premium taxi operators engaged in schemes that did not comply with their franchise to operate and inconvenienced passengers.

LTFRB Memorandum Circular 2022-080 was signed by former officer-in-charge Riza Marie Paches and board member Mercy Jane Leynes.

Premium taxis were introduced under the Department of Transportation’s “taxi modernization program,” stated under Department Order 2019-007, and are supposed to charge a meter-based rate, the same as regular taxis.

Premium taxis are usually multipurpose vans, utility vans or sports utility vehicles while regular taxis are sedans.

The LTFRB said some premium taxi operators and drivers employed the “ulo-ulo” scheme, charging passengers per person instead of the approved meter-based rate.

Yet other premium taxi drivers set up makeshift terminals along certain streets to wait for passengers instead of driving around to pick up passengers, according to the agency.

“The technical division proposed to suspend the acceptance of application of new certificate of public convenience (CPCs) to operate premium taxi service due to reports that premium taxis are operating a ‘terminal to terminal’ or an ‘ulo-ulo’ scheme,” the LTFRB said in the memo.

The LTFRB has apprehended erring premium taxi drivers and impounded their vehicles.

Operators of other transport denominations, among them UV Express, have appealed to the LTFRB to suspend the issuance of premium taxi franchises due to violations that led to unfair competition, according to the board.

The acceptance of applications for the issuance of new CPCs for premium taxi services shall be suspended pending the amendment of the Department of Transportation order that prescribes guidelines for the denomination.