DoTr freezes ride-hailing onboarding amid ‘ghost drivers’ scandal

The Department of Transportation (DoTr) has ordered an immediate freeze on the onboarding of new drivers and riders for ride-hailing and motorcycle taxi platforms, following revelations that companies have significantly exceeded government-mandated limits.

In a memorandum released Friday, Acting Transportation Secretary Giovanni Lopez instructed the Land Transportation Franchising and Regulatory Board (LTFRB) to stop all new registrations, except for applicants who already hold valid franchises.

The crackdown follows the discovery of thousands of “tempo” drivers — individuals working for transport network companies and motorcycle taxi platforms without legal authorization or LTFRB franchises.

The issue came to light during the distribution of government fuel subsidies. Social Welfare Secretary Rex Gatchalian reported that thousands of drivers were unable to receive P5,000 in cash assistance because they were missing from official LTFRB lists, despite working for major platforms.

Gatchalian said President Ferdinand Marcos Jr. ordered that all drivers receive aid regardless of their legal status, but the President also directed the DoTr to investigate how companies bypassed established caps.

“The orders of the President are clear; we should act on this issue immediately so that drivers and riders are not placed in uncertainty,” Lopez said. “It is only right that their onboarding is done legally. This illegal system should not continue.”

During a Senate committee hearing, Lopez warned that the department is reviewing penalties and legal repercussions for companies found in breach of the limits.

He also vowed to hold accountable any officials within the DoTr and LTFRB who may have allowed the “overboarding” to occur.

The DoTr has specifically banned on-the-spot and same-day onboarding activities, citing a lack of proper screening and compliance checks.

“Companies must comply with the prescribed limits,” Lopez added. “We cannot allow a system that puts drivers and riders at risk.”