CEBU transport groups formally opposed Green and Smart Mobility (GSM) Philippines Inc.’s application to deploy 600 electric taxis in Metro Cebu during a franchise hearing on Thursday, Jan. 15, 2026, citing traffic congestion and foreign ownership concerns.
Lawyers for local operators argued the rollout violates constitutional ownership limits and lacks necessary public consultation, while the applicant GSM maintained that its zero-emission fleet addresses a genuine public necessity and public convenience.
GSM’s counsel Manuel Gordon said the application for a certificate of public convenience was filed in full compliance with government requirements and with due consideration for the welfare of the riding public.
During the franchise hearing held on Thursday, taxi operators voiced firm resistance, arguing that GSM Philippines is wholly foreign-owned.
Hayde Delos Reyes-Del Rama, legal counsel for four local taxi operators, said in an interview with SunStar Cebu that public utility operators are constitutionally required to be at least 60 percent Filipino-owned.
“The GSM is 100 percent foreign-owned. What is required in the Constitution should be at least 60 percent Filipino-owned,” said Del Rama, adding that this ownership structure disqualifies the company from operating a public utility, such as a taxi service, under Philippine law.
Del Rama cited several legal provisions to support GSM’s position, including Article XII, Section 11 of the 1987 Constitution, which limits the operation of public utilities to corporations with at least 60 percent Filipino ownership.
She also referenced Section 16(a) of the Public Service Act and Republic Act No. 11659, arguing these laws reinforce the constitutional intent to safeguard Filipino control over public utility operations.
The petition also argued that required public consultations, impact studies and coordination with local governments were disregarded before the rollout of EV transport services.
‘Lack of consultation’
Terence Fernandez, counsel for the United Cebu Taxi Operators Association Inc., in a separate interview, pointed out that Memorandum Circular No. 2025-050, which authorized 600 additional electric taxi slots, is void due to the lack of mandatory public consultation.
Fernandez said the Department of Transportation itself has stressed the need for adequate stakeholder consultation and alignment with the Electric Vehicle Industry Development Act, noting that existing taxi operators were not given the required opportunity before GSM’s application was approved.
“It will adversely affect the existing taxi operators here in Cebu. We are talking about the entry of 600 more taxi units here,” said Fernandez, adding that Metro Cebu’s traffic conditions can no longer accommodate an additional 600 taxi units.
Piston Cebu chairperson Gregory Perez has also opposed the rollout of additional taxis, arguing that Cebu already has enough operational transport vehicles that prioritize local needs over those of an international company.
Eugenio Ibo Jr., officer-in-charge of the Land Transportation Franchising and Regulatory Board Region 7, said five days after the hearing, a decision will be made on whether the application is approved or not. (DPC)