TRANSPORT groups raised concerns over traffic congestion, fleet oversupply, and regulatory compliance in formally opposing Green and Smart Mobility (GSM) Philippines Inc.’s application bid to deploy 600 electric taxi units in Metro Cebu.
The franchise hearing on Thursday, January 15, 2026, drew strong resistance from existing taxi operators who warned that the proposed rollout would worsen Metro Cebu’s already strained road network and undermine existing operators and public interest.
Lawyer Terence Fernandez, counsel for the United Cebu Taxi Operators Association Inc., told SunStar Cebu that Metro Cebu’s current traffic conditions can no longer accommodate an additional 600 taxi units.
He also pointed out Memorandum Circular 2025-050, which authorized 600 additional electric taxi slots, arguing that it is void due to the lack of mandatory public consultation.
“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 the applicant came up with the figure without appropriate data.
GSM’s counsel Manuel Gordon, in response, said the company’s taxi expansion aims to serve the public with high-quality, zero-emission vehicles, emphasizing that the initiative addresses genuine necessity and public convenience.
However, the opposition argued that GSM’s Application for a Certificate of Public Convenience (CPC) should be denied and dismissed for being invalid, unconstitutional, procedurally defective, and prejudicial to existing taxi operators and the public.
Lawyer Hayde Delos Reyes-Del Rama, counsel for four operators, in a separate interview, raised GSM’s eligibility to operate, arguing that the company is 100 percent foreign-owned, which the opposition claim disqualifies it from operating a public utility such as a taxi service.
They cited Article XII, Section 11 of the 1987 Constitution, Section 16(a) of the Public Service Act, and Republic Act 11659, all of which require public utility operators to be at least 60 percent Filipino-owned.
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.
The transport groups also stressed that no traffic impact study, road-capacity assessment, or oversupply analysis was presented to justify the introduction of 600 additional taxis, in violation of Section 15 of the Public Service Act, which requires a showing of public necessity before any franchise is granted.
The Land Transportation Franchising and Regulatory Board 7 has yet to issue a ruling on the application. (DPC)