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The Land Transportation Franchising and Regulatory Board warned private trucks and vans against delivering for online marketplaces without a permit
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Violators face impounding and fines of up to P200,000 per unit, and breaches of the 60-40 Filipino ownership rule carry up to 12 years in prison or a fine of up to P2 million
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Operators have two options: stop, or get a Certificate of Public Convenience
The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered a crackdown on private motor vehicles that operate as truck-for-hire and delivery services for online marketplaces and shopping platforms without the required authority.
In a press release dated October 15, the board, acting under the guidance of Department of Transportation (DOTr) Secretary Giovanni “Banoy” Lopez, warned vehicle owners against offering transport, logistics and delivery services without proper permits. Acting LTFRB Chairman Atty. Greg Pua Jr. said legitimate operators raised the issue and the agency’s own investigation confirmed it.
The investigation found that private trucks and vans are serving e-commerce marketplaces and shopping platforms as transport, logistics and delivery providers. Pua said such operations are considered colorum, the term for vehicles running without a franchise or permit, and are unfair to legitimate operators who follow regulations.
Enforcement stepped up nationwide
Pua said the board has begun operations against violators in coordination with law enforcement agencies. He said the LTFRB’s Law Enforcement Unit has been told to step up anti-colorum operations nationwide, particularly against private vehicles in unauthorized truck-for-hire service for online platforms. “Your only options so far are to stop or get the necessary permit for your operation,” he said.
He added that a Certificate of Public Convenience (CPC), the authority issued by the LTFRB, is not just a regulatory requirement but also a road safety measure, since vehicles with a CPC go through roadworthiness inspections. The campaign, the board said, follows President Ferdinand Marcos Jr.’s instruction to apply fair rules that protect the interest and welfare of the transport sector.
Penalties
Under Joint Administrative Order No. 2014-01, illegal operations are punishable by impounding of the vehicle and a fine of up to P200,000 per unit.
Under the Public Service Act, as amended by Republic Act No. 11659, such services must also be owned and controlled by Filipino citizens, in line with the constitutional 60-40 ownership limit. Violating this rule carries a heavier penalty of imprisonment of six years and one day to 12 years, a fine of up to P2 million, or both.
Pua urged operators to follow the rules. “Let us make our country a better place to do business,” he said. He warned that otherwise the board will be forced to rely on law enforcement, which it would rather avoid.
