The Land Transportation Franchising and Regulatory Board (LTFRB) has directed ride-hailing app Move It to cease operations in Cebu and Cagayan de Oro (CdO), citing a lack of operational authorization.

In a letter, LTFRB chairperson Teofilo E. Guadiz III stated that submitted records and evidence “clearly indicate that it has not granted any authorization by the TWG (Technical Working Group) to operate in Cebu and Cagayan de Oro.”

Move It general Wayne Jacinto confirmed the order during a press conference in Cebu. “They said we don’t have permission to operate in Cebu and CdO,” Jacinto said.

However, Jacinto argued that the LTFRB’s own motorcycle taxi guidelines permit operations in these cities. He expressed concern that the cessation of services would affect 6,000 riders across the two cities, with 3,000 accredited riders in each.

Jacinto estimated that around 14,000 riders would lose their livelihoods due to the order and the reduced cap.

Jacinto also mentioned that the LTFRB order imposed a reduced rider cap on Move It, decreasing it from nearly 15,000 to 6,836.

The LTFRB explained that Move It exceeded its authorized rider cap and failed to comply with mandatory reporting requirements concerning rider activation, deactivation and reactivation, as mandated under the motorcycle taxi pilot program.

Jacinto estimated that around 14,000 riders would lose their livelihoods due to the order and the reduced cap.

Eduardo Montealto, LTFRB-7 regional director, said his office lacks direct information regarding the cease operations order.

While the current chairman of the TWG is the LTFRB chairperson, motorcycle operations fall within the jurisdiction of the Department of Transportation-Land Transportation Office (DoTr-LTO).

However, it comes in contrast to reports that DoTr Secretary Vince Dizon announced last Friday that the LTFRB’s order to reduce Move It’s motorcycle units and halt operations in Cebu and Cagayan de Oro will not be implemented for now.

Dizon said Move It has filed a motion for reconsideration with the LTFRB.

The LTFRB had earlier ordered Move It to reduce its motorcycle units by 7,826 and cease operations in the two cities, stating the company has 14,662 riders, exceeding the allocated 6,836.