The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a show cause order to motorcycle ride-hailing and delivery service app Angkas, demanding an explanation for allegedly exceeding the mandated cap on motorcycle taxis in the country.
In a directive signed by LTFRB Chief and Motorcycle Taxi Technical Working Group (MC Taxi TWG) Chairman Teofilo Guadiz III, Angkas was ordered “to explain why it should not be suspended or removed from the motorcycle taxi pilot study/program for allegedly exceeding the allocated rider cap for Angkas.”
Angkas has been given five days from receipt of the order to respond and is required to appear before the MC Taxi TWG on December 18, 2024.
In response, Angkas acknowledged receipt of the show cause order and stated, “We will address the matter in the appropriate forum.”
The company also noted that this issue may have arisen from a recent Senate hearing, during which it was alleged that Move It admitted to exceeding the caps.
“Rest assured we take the time to train our drivers and implore the industry to keep to the same standards for the safety of the riding public,” Angkas added in its statement.
The LTFRB reiterated in late November that it has maintained a cap of 45,000 motorcycle taxis in Metro Manila since 2020.
Guadiz emphasized, “The LTFRB did not increase the number of MC taxis in the National Capital Region. It was pegged at 45,000 three years ago. It still stands at 45,000.”
The only increases implemented by the LTFRB, according to Guadiz, were in Regions 3 (Central Luzon) and 4 (Calabarzon and Mimaropa), which have a cap of 2,000 motorcycle taxis each, totaling 4,000.
The companies allowed to operate in these regions are Para Xpress, Maxim, Dingdong, and GrabBike.
Angkas, a prominent motorcycle ride-hailing service in the Philippines, has faced regulatory challenges in the past.
In December 2019, the LTFRB imposed a cap of 30,000 riders for Metro Manila and 9,000 for Metro Cebu, which Angkas contested, arguing that the cap would result in the loss of livelihood for about 17,000 accredited riders.
A Mandaluyong court issued a 72-hour temporary restraining order against the LTFRB’s cap on Angkas riders in January 2020.
Subsequently, the rider cap was increased to 45,000 for Metro Manila, with each of the current motorcycle transport network companies—Angkas, JoyRide, and Move It—allocated 15,000 riders.
The recent show cause order against Angkas highlights ongoing tensions between the company and regulatory authorities over compliance with rider caps and operational standards.
The outcome of this inquiry could have significant implications for the future operations of Angkas and other motorcycle ride-hailing services in the Philippines.