NewsMacroMOVE IT Appeals LTFRB's P555-Million Fine Over Motorcycle Taxi Rider Cap Exceedance

MOVE IT Appeals LTFRB's P555-Million Fine Over Motorcycle Taxi Rider Cap Exceedance

Author: Bworldonline·

Key Takeaways

  • •Move It has filed a motion for reconsideration to appeal the LTFRB's P555-million fine for exceeding its authorized rider allocation.
  • •The LTFRB authorized Move It to field 17,746 riders across Metro Manila, Cebu City, and Cagayan de Oro, but the platform's riders surpassed 73,000 — more than 55,000 above the cap.
  • •Move It argues that rider allocation should be treated as a dynamic measure of live, on-demand supply, since gig-economy riders go online and offline based on their own schedules.
  • •Party-list Rep. Rodge Gutierrez and the group Digital Pinoys called on regulators to ensure riders do not lose their livelihoods, while Digital Pinoys maintained that livelihood concerns must not excuse regulatory violations.
  • •The proposed Motorcycle Taxi Bill, which seeks a permanent regulatory framework for the industry, remains pending in Congress, leaving current rules to administrative issuances.
MOVE IT Appeals LTFRB's P555-Million Fine Over Motorcycle Taxi Rider Cap Exceedance

Move It, a Philippine motorcycle taxi ride-hailing platform, is appealing the P555-million fine imposed by the Land Transportation Franchising and Regulatory Board (LTFRB) for exceeding its authorized rider cap allocation.

"After thoroughly reviewing the decision and its implications for the industry, we have filed a motion for reconsideration and are engaging the board through the proper process as it is reviewed," Move It said in a statement on Tuesday.

The ride-hailing platform confirmed that it had received the LTFRB's preliminary decision, which imposed a penalty on the company over its rider allocation.

"We respect the board's authority, and we remain committed to working toward a sustainable and adaptive regulatory framework for motorcycle taxis," it added.

The LTFRB said it investigated the motorcycle taxi platform over allegations that it had onboarded riders to its online system beyond its allowable rider cap.

"In as much as the LTFRB wants to provide all the information in relation to the investigation conducted, the agency is constrained to do so in the interest of due process as the legal proceedings are still considered ongoing," the regulator said in a statement.

According to the LTFRB, Move It was authorized to field a combined 17,746 riders across Metro Manila, Cebu City and Cagayan de Oro. The regulator said the platform's current riders, however, had reached more than 73,000 — surpassing the more than 55,000-rider allocation set by the agency. That gap of more than 55,000 riders between the authorized cap and the platform's reported roster frames the livelihood concerns now being raised around the penalty.

Move It, for its part, asserted that it views rider allocation as a "dynamic measure of live, on-demand supply."

"The gig economy is built on flexibility, with riders going online and offline throughout the day based on their own schedules," the company said.

Move It added that it would focus on maintaining a continuous supply for commuters and would monitor the number of riders available, particularly during peak rush hours.

The standoff illustrates the regulatory challenge facing the motorcycle taxi sector: fitting fixed, government-set allocations to app-based services in which supply shifts in real time as riders log on and off.

"To our rider-partners, Move It will continue to work closely with the LTFRB and other regulators to protect your livelihood," it said.

Meanwhile, a lawmaker and a digital rights group on Tuesday called on transport regulators to ensure that motorcycle taxi riders would not lose their livelihoods as a result of the penalty.

In a statement, Party-list Rep. Ramon Rodrigo "Rodge" L. Gutierrez said the LTFRB should make sure motorcycle taxi drivers would not bear the consequences of the fine.

"While the fine is aimed at the platform, the riders may ultimately suffer. They rely on this livelihood for their families," Mr. Gutierrez said in Filipino. "The LTFRB must ensure that they will not end up as the victims of this decision."

Mr. Gutierrez, senior vice-chairperson of the House Committee on Transportation, said motorcycle taxi riders should not be held responsible for issues involving rider caps, the recruitment of excess riders, or the lack of a permanent legal framework for the industry.

He noted that riders rely on motorcycle taxi operations to support their families and should not be disadvantaged by regulatory disputes involving the platforms they work with.

The lawmaker said he would coordinate with Move It and the LTFRB to ensure that the penalty would not put riders' livelihoods at risk. He added, however, that administrative issuances do not provide the long-term legal certainty needed to protect motorcycle taxi riders.

His party-list is pushing for the passage of the proposed Motorcycle Taxi Bill, which seeks to establish a permanent regulatory framework for the industry. Until such a law is in place, the sector's operating rules rest on administrative issuances rather than permanent legislation.

In a separate statement, the advocacy group Digital Pinoys also called on Tuesday for measures to protect the livelihoods of affected motorcycle taxi riders, saying workers should not bear the consequences of the platform's regulatory noncompliance.

"The riders should not be made to bear the consequences of a platform operator's disregard for regulatory rules," the group said.

"The 55,575 riders identified by the LTFRB as exceeding Move It's authorized allocation should not simply be abandoned," Digital Pinoys said.

The group said affected workers deserve fair treatment, but insisted that "livelihood concerns must not be used to excuse or set aside established regulatory violations."

Digital Pinoys urged strict penalties and accurate record verification to protect public funds.

"No company should be allowed to treat regulatory compliance as optional," it said.

The case now moves through the LTFRB's own process, with legal proceedings still considered ongoing, while in Congress the proposed Motorcycle Taxi Bill remains the pending route to a permanent framework for the industry and the riders who work in it. — Ashley Erika O. Jose, Pexcel John Bacon and Erika Mae P. Sinaking