Davao City enforces evidence-based rules on transport firms

INAUGURAL TRIP. Residents from Toril boarded the DC Buses for their “inaugural trip” on Friday, December 5, 2025. Other routes have also begun their operations.
INAUGURAL TRIP. Residents from Toril boarded the DC Buses for their “inaugural trip” on Friday, December 5, 2025. Other routes have also begun their operations.Davao CIO
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THE City Government of Davao has reiterated that all entities and organizations planning to implement, or already operating, transport initiatives in the city must secure the necessary permits and back their operations with comprehensive transport studies.

In a statement, the local government emphasized that transport studies are essential to ensure any proposed system genuinely responds to the city’s needs, serves commuters efficiently, and complements Davao City’s overall mobility and traffic management plan.

“The City Government welcomes constructive inputs, proposals, and transport studies from stakeholders. We remain open to collaboration and dialogue aimed at improving mobility and addressing the concerns of the public,” the statement read on Friday, February 13, 2026.

Groups seeking formal discussions or an official audience regarding transport-related proposals were advised to coordinate directly with the City Mayor’s Office.

The move underscores the city administration’s push for evidence-based planning amid the entry of new transport players in Davao.

Green GSM flagged over permit issues

The city government recently flagged Green GSM Philippines, the country’s first all-electric taxi service provider, for allegedly operating without the required local permits.

According to the LGU, the company has yet to secure a business permit, locational clearance, and building permit. It also allegedly failed to obtain a recommendation from the City Transport and Traffic Management Board (CTTMB) and the Sangguniang Panlungsod for its franchise application with the Land Transportation Franchising and Regulatory Board (LTFRB), as required under Davao City’s Comprehensive Transport and Traffic Code (Ordinance No. 0334-12).

“While the City Government of Davao supports environmentally cleaner transportation, it will not tolerate any company that blatantly disregards local ordinances. Companies may choose to bypass regulations elsewhere, but such behavior will not be allowed in Davao City,” the LGU said.

Until all required permits are secured, the city government maintains that the company’s operations would be considered illegal. It also urged the Land Transportation Office (LTO) and the LTFRB to investigate the company’s operations following its launch on December 15, 2025.

Green GSM officially launched in Davao City on December 15, rolling out 500 electric taxis manufactured by VinFast. The vehicles, designed for urban use, have a reported driving range of 326 kilometers and are equipped with driver-assist technology and modern infotainment systems. Units may be booked via a mobile app, hotline, designated pick-up points, or street hailing.

Despite the city’s disclosure, Green GSM has yet to issue a statement addressing the permit concerns as of press time.

Franchise application faces oppositions

Meanwhile, the LTFRB-Davao Region confirmed that Green GSM’s application for a Certificate of Public Convenience (CPC) remains pending after three oppositions were filed.

Deanne Aubrey Salcedo, legal section assistant of LTFRB-Davao, said in a previous report that oppositions may be filed based on grounds provided under LTFRB rules. Two of the oppositions were filed locally, while one was submitted to the central office for resolution.

Earlier, City Councilor Temujin “Tek” Ocampo advised the company to consult the city government before deploying its 500 electric taxis, warning that the move could potentially worsen traffic congestion. Acting Mayor Sebastian “Baste” Duterte also stressed the need for compliance with all regulatory requirements before operations.

RideIT accreditation developments

Another transport player, HAVE IT Software Company, operator of the ride-hailing platform RideIT, has secured accreditation as a Transport Network Company (TNC).

The LTFRB-Davao said the accreditation was granted through Board Resolution No. 005, Series of 2026, signed by LTFRB Chairman Atty. Vigor D. Mendoza II. The company was granted a two-year TNC accreditation after being deemed qualified, financially capable, and compliant with requirements.

LTFRB-Davao Regional Director Nonito A. Llanos III said the move reflects the agency’s support for innovative, technology-driven transport solutions that promote safe and regulated mobility.

RideIT, launched in April 2025, features real-time tracking, in-app booking, and courier delivery services. The app was recognized as Most Innovative Startup during the 2025 Davao Startup Week.

However, officials earlier noted that prior to accreditation, RideIT’s operations were considered illegal under existing laws due to the absence of a franchise.

In 2025, members of the 20th City Council urged the LTFRB to include Davao City in the motorcycle taxi pilot study program, which currently covers Metro Manila, Cebu, and Cagayan de Oro. RGL

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