THE City Government of Davao has flagged Green GSM Taxis, the country’s first all-electric taxi service provider, for operating without the required permits, including a business permit, locational clearance, and building permit.
"Green GSM has not obtained a recommendation from the City Transport and Traffic Management Board (CTTMB) and from the Sangguniang Panlungsod for their franchise application with the LTRFB, as mandated by the Comprehensive Transport and Traffic Code Ordinance of Davao City (Ordinance No. 0334-12)," the city government wrote in its statement on December 16, 2025.
The local government unit reminded the operator of Green GSM Taxis, which uses a fleet of VinFast electric vehicles (EVs), that it is their legal obligation to secure and comply with all necessary permits from government agencies before operating in Davao City.
"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 city government said.
The LGU added that until all required permits are obtained and complied with, the company’s operations will be considered illegal.
The city government also urged the Land Transportation Office (LTO) and the Land Transportation Franchising and Regulatory Board (LTFRB) to investigate the operations of Green GSM Taxis following their launch on December 15, 2025.
However, despite the city government’s disclosure that Green GSM has yet to secure the necessary permits, the company has not issued a statement regarding the matter as of press time.
Electric rides in Davao City
Green GSM Taxis officially launched operations in Davao City on December 15, 2025.
In a Facebook post, Green GSM Philippines expressed gratitude for what it described as a warm welcome from the city.
Dao Quy Phi, managing director of Green GSM Southeast Asia, said Davao City places strong emphasis on order, safety, and environmental responsibility. He added that the company aims to provide a reliable, zero-emission mobility option aligned with the city’s values while serving Dabawenyos.
"This expansion is a strategic step in our national roadmap for electric mobility, and we look forward to working closely with Davao's institutions and communities to ensure that the service contributes meaningfully to the city's long-term goals for well-managed and sustainable urban development," he said in a press release.
The press release also stated that the launch was attended by LTFRB–Davao Regional Director Nonito Llanos and “local government representatives.”
A total of 500 electric vehicles arrived in Davao last October. The units, manufactured by VinFast, can be booked through the Green GSM app, hotline, designated pick-up points, or via street hailing.
The company added that its expansion to Davao highlights its commitment to supporting cities that promote community well-being and sustainable growth, while advancing the shift toward cleaner and more efficient transportation.
Earlier, the Davao City Investment Promotions Center (DCIPC) said it expects the electric taxi operations to generate around 20,000 jobs initially, potentially increasing to 70,000 once fully scaled.
During its Metro Manila launch, the company said it would operate under a hybrid service model that combines traditional taxi hailing and app-based booking. Drivers will either be employed directly or operate as partners.
Green and Smart Mobility units are VinFast VF 5 models — compact vehicles designed for urban use. Each unit has a 326-kilometer range, driver-assist technology, and modern infotainment systems.
Dabawenyos sentiments
Romel Pecajas commented on the City Government of Davao’s official statement that he would not patronize Green GSM Taxis until the company secures all the required permits.
CP Mugas said it was a good move for the local government to call out Green GSM Taxis, considering feedback from some of the pioneer drivers hired in Manila.
“I hope a more due diligence will be made before they can operate," he said.
Ken Martin also commented that it is only right for Green GSM Taxis to comply with all required permits before operating, noting that failure to do so would be unfair to other transportation players in the city. RGP