CEBU City Mayor Nestor Archival has proposed a one-year moratorium on the rollout of new taxi units, specifically targeting a planned influx of electric vehicles (EVs). While the City Government supports green initiatives, the mayor argues that regulators need time to assess how adding hundreds of new cars would impact the city’s worsening congestion and the livelihood of existing operators.
How can the City Government balance the inevitable transition to sustainable transportation with the immediate reality of overwhelmed road infrastructure?
The push for a pause
Archival announced the proposal during a press conference on Monday, Dec. 22, 2025. He said that he had discussed the matter with Vice Mayor Tomas Osmeña, suggesting a freeze of at least one year on new franchises. This period would allow the Land Transportation Franchising and Regulatory Board (LTFRB) and local authorities to evaluate the carrying capacity of city streets.
“We don’t know how long it will last, but I think it will be the best,” Archival said.
The proposal comes amid a specific controversy: the planned deployment of 600 electric taxis in Metro Cebu by Green and Smart Mobility (GSM), a Vietnam-based ride-hailing firm.
Cebu Gov. Pamela Baricuatro has already voiced opposition to this rollout, citing concerns over the regulatory process and traffic conditions.
Replacement over addition
Archival, who advocates causes for the environment, clarified that the City is not opposed to the EV technology itself. Instead of opening new slots that increase the total number of vehicles on the road, he proposes integrating EVs through the natural expiration of current licenses. As older gas-powered units retire, they should be replaced by electric ones.
“During the renewal of franchises, if possible, I would like to request that EVs be used,” Archival said.
He plans to formally ask the LTFRB and the Land Transportation Office to make EV adoption a requirement during the renewal process for existing franchises. This strategy aims to modernize the fleet without adding to the traffic volume.
Regulatory delays
The discussion on the moratorium coincides with procedural stalls for the applicant, GSM. The LTFRB has suspended the firm’s provisional authority to deploy the 600 units pending a public consultation.
The franchise hearing originally scheduled for December was moved to Jan. 15, 2026. LTFRB 7 Acting Chief Transportation Officer Edwin Antepuesto said that while GSM published the notice of hearing on Monday, Dec. 22, it failed to meet the mandatory five-day period required before the hearing could proceed.
Implications
If the moratorium is accepted, commuters will not see an increase in the number of available taxis in the immediate future, which limits options but prevents further clogging of major thoroughfares. For existing taxi operators, the freeze offers temporary protection against a sudden saturation of the market by a large, foreign-backed competitor. The LTFRB has yet to issue a formal response to the mayor’s proposal. / EHP, DPC