Move It appeals LTFRB fine over motorcycle taxi rider cap breach in the Philippines
Regulatory pressure on the Philippine motorcycle taxi sector is intensifying as Move It challenges a P555-million penalty tied to rider allocation limits. The dispute also raises broader concerns about how rider caps are applied in a gig economy model and whether drivers' incomes could be hit while legal proceedings continue.
Highlights
- Move It filed a motion to appeal the LTFRB's preliminary P555-million fine for exceeding the 17,746 rider cap by onboarding more than 73,000 riders.
- LTFRB legal proceedings continue over Move It's excess of more than 55,000 riders beyond regulatory allocation, with ongoing non-disclosure due to due process.
- Lawmaker Ramon Rodrigo Gutierrez and Digital Pinoys highlighted risks to thousands of riders’ livelihoods and called for balancing strict compliance with fair treatment and a permanent legal framework.
Appeal centers on rider allocation dispute
As reported by BusinessWorld Online, Move It says it has filed a motion for reconsideration after the Land Transportation Franchising and Regulatory Board imposed a preliminary P555-million fine for exceeding the rider cap for motorcycle taxis.In a statement on Tuesday, the ride-hailing platform says it has received the regulator's preliminary decision and is pursuing the proper process while the case is under review. The company says it respects the board's authority and remains committed to a sustainable and adaptive regulatory framework for motorcycle taxis.
The LTFRB says it investigated a motorcycle taxi platform over allegations that it onboarded more riders in its online system than allowed under its cap. The agency says legal proceedings remain ongoing and that it is limiting further disclosure in the interest of due process.
According to the regulator, Move It is allowed a combined 17,746 riders in Metro Manila, Cebu City and Cagayan de Oro, but its current riders reached more than 73,000, exceeding the more than 55,000 allocations set by the LTFRB. Move It, however, says rider allocation should be treated as a dynamic measure of live, on-demand supply, arguing that riders in the gig economy regularly go online and offline based on their own schedules.
The company says it will focus on maintaining continuous supply for commuters and monitor rider availability, especially during peak rush hours. It also says it will continue working with the LTFRB and other regulators to protect the livelihoods of its rider-partners.
Livelihood concerns add pressure for legal framework
A lawmaker and an advocacy group are also weighing in on the case, highlighting the potential effect of the penalty on thousands of motorcycle taxi riders. Their statements add a labor and policy dimension to a dispute that is currently centered on regulatory compliance.Party-list Representative Ramon Rodrigo "Rodge" L. Gutierrez, senior vice-chairperson of the House Committee on Transportation, says riders should not bear the consequences of issues involving rider caps, excess recruitment or the absence of a permanent legal framework for the industry. He says his group will coordinate with Move It and the LTFRB to help ensure the penalty does not put riders' livelihoods at risk, while continuing to push for the proposed Motorcycle Taxi Bill.
In a separate statement, Digital Pinoys says affected workers deserve fair treatment but should not be used to excuse regulatory violations. The group says the 55,575 riders identified by the LTFRB as exceeding Move It's authorized allocation should not simply be abandoned, while also calling for strict penalties and accurate record verification to protect public funds.
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