Foreign e-taxis start Cebu operations under temporary permit, local taxi groups protest

FOREIGN-OPERATED electric taxis have begun operating on major roads in Cebu City under a temporary permit issued in November 2025, even as local taxi operators protest and question the fairness of the move.

The electric taxis are run by Vietnam-based Green and Smart Mobility (GSM). The Land Transportation Franchising and Regulatory Board (LTFRB) 7 said GSM is operating under a 90-day probationary authority while its application for a Certificate of Public Convenience remains under review.

LTFRB: 90-day temporary authority

LTFRB 7 Director Eugenio Ibo said GSM was granted the probationary authority in November 2025. This allows the company to operate temporarily while regulators study its application.

“During their application, subsequently they were issued probationary authority valid for 90 days, without prejudice to the result of their application,” Ibo said in a phone interview with SunStar Cebu on Friday, Jan. 30, 2026.

He explained that the permit allows operations while the application for a certificate of public Convenience is still pending.

Ibo said the authority covers 600 electric taxi units applied for in Central Visayas. He added that although the permit was issued in November, the company did not start operating right away.

He also clarified that the order issued by Cebu Gov. Pamela Baricuatro on Dec. 19, 2025 was a suspension, not a cancellation, of GSM’s operations.

“It’s just a suspension,” Ibo said.

Ibo said opposition from local taxi operators has already been forwarded to the LTFRB Central Office, following agency rules.

“Once an application is contested, it is elevated to the LTFRB Board en banc,” he said, referring to a Jan. 15, 2026 hearing.

Local operators say move is unfair

The United Cebu Taxi Operators Association (Uctoa) strongly opposed the operations. Uctoa president Richard Cabucos said GSM should not be allowed to operate even with a probationary authority.

He claimed the temporary permit harms long-established local operators who have followed government rules for years.

“What they are doing is really unfair because we have all been following the law and complying with what the government requires, while they are taking shortcuts,” Cabucos said in Cebuano.

He warned that allowing the foreign e-taxis to operate could threaten the livelihoods of thousands of people in Cebu’s taxi industry.

He said around 3,000 operators and many employees depend on the business for their daily income.

Cabucos also raised concerns about GSM’s fully integrated system, which includes a meter and a ride-hailing app. He said this could eventually push local operators out of the market.

Cabucos said Uctoa is not against electric vehicles, but against adding more taxi units to Cebu’s already crowded roads.

He said local operators are willing to modernize by replacing old units with electric taxis under their existing franchises, instead of adding new units.

Cabucos also questioned whether GSM had secured endorsements from local officials, including the Cebu City mayor and the provincial governor. He said Governor Baricuatro earlier withheld her endorsement and called for further studies before allowing the e-taxis to operate.

Background of the dispute

GSM’s plan to deploy 600 electric taxis in Metro Cebu has been controversial since November 2025. Local operators filed a formal opposition on Dec. 23 after GSM applied for the units within 24 hours under an LTFRB memorandum.

The company’s initial launch, set for Dec. 19, 2025, was suspended after concerns were raised about licensing, traffic congestion and infrastructure readiness.

During a Jan. 5 consultation, Baricuatro said Metro Cebu lacks enough charging stations and has power supply issues that could affect a large electric taxi fleet.

Officials also cited a Japan International Cooperation Agency report showing that traffic congestion in Metro Cebu causes about P1.1 billion in economic losses each day. While around 60 percent of residents use public transport, they make up only about 10 percent of vehicles on the road, raising fears that more taxis could worsen traffic problems. / CDFELECTRIC taxis operated by Vietnam-based firm Green and Smart Mobility (GSM) were seen on major roads in Cebu City on Thursday, January 30, 2026, even as their planned rollout remains under review.

The sightings come as GSM’s proposal to deploy 600 electric taxi units in Metro Cebu is still suspended following opposition from local taxi operators, led by the United Cebu Taxi Operators Association (UCTOA).

The group earlier raised concerns over licensing, traffic congestion, and the potential impact of a foreign-backed fleet on long-established local operators.

Cebu Governor Pamela Baricuatro earlier supported the suspension of GSM’s launch, originally scheduled for December 19, 2025, after an opposition appeal from local stakeholders.

To address the broader transport issue, the Cebu Provincial Government also formed the Cebu Transport Council, tasked with shaping the province’s long-term transport policy amid the push toward vehicle electrification.

The dispute stemmed from a memorandum issued by the Land Transportation Franchising and Regulatory Board (LTFRB) in November 2025, under which GSM applied for 600 electric taxi units within 24 hours.

Local operators filed a formal opposition on December 23, prompting the suspension of the rollout.

During a consultation meeting on January 5 with GSM, LTFRB, and local taxi operators, Baricuatro also pointed out that Cebu currently lacks sufficient charging stations and power supply stability to immediately support a large-scale electric taxi fleet.

In the same meeting, a report was also presented stating that Metro Cebu faces significant economic costs from traffic congestion, estimated at about P1.1 billion in daily losses, according to the Japan International Cooperation Agency (Jica).

While around 60 percent of residents rely on public transport, they account for only 10 percent of vehicles on the road, raising concerns that adding a large new taxi fleet could further strain already congested streets. (CDF)