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The Land Transportation Franchising and Regulatory Board issued subpoenas to online shopping platforms Lazada, Shopee, Zalora, TikTok Shop and SM Retail Inc. for records on their delivery partners
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Each must submit its updated list of accredited truck-for-hire providers, with supporting documents, within three working days
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Colorum delivery units face impoundment and fines of up to P200,000 per unit
The Land Transportation Franchising and Regulatory Board (LTFRB) has summoned the records of five popular online shopping platforms – Lazada, Lazada, Shopee, Zalora, TikTok Shop and SM Retail Inc. – to identify which of their delivery partners are legitimate, the agency announced in a news release on October 17.
The move escalates the board’s crackdown on colorum truck-for-hire services, which it announced last week.
READ: LTFRB cracks down on illegal truck-for-hire for e-commerce
Acting LTFRB chairman Atty. Greg Pua Jr. said the subpoenas duces tecum are part of an operation targeting owners of trucks and other private vehicles that provide delivery services without the proper LTFRB permits.
“We are in the initial phase of our aggressive operations against truck-for-hire or delivery service motor vehicles that are providing services illegally,” Pua said. By obtaining the lists, the board will be able to tell legitimate operators apart from colorum ones, he added.
Under the subpoenas signed by LTFRB Legal Division chief Atty. Ralph Aldrin Baguio, each company, or its authorized representative, must submit to the board the complete and updated list of its accredited truck-for-hire service providers, along with documents that identify them. The deadline is three working days from receipt. The board said it will consider the documents in connection with the matter under investigation.
Why the LTFRB is acting
The LTFRB said it earlier investigated and validated reports that trucks, vans and other private vehicle owners were illegally serving online marketplaces and shopping platforms as transport, logistics and delivery providers. PortCalls reported the board’s initial warning to such operators on October 15.
Pua said delivery services come under LTFRB rules and that any operation without the agency’s permit is illegal and considered colorum. Penalties include impoundment of the vehicle and a fine of up to P200,000 per unit.
Besides road safety, the board said colorum truck-for-hire and delivery services are unfair to legitimate operators who follow government rules. It added that the campaign is in line with President Ferdinand “Bongbong” R. Marcos Jr.’s instruction to implement fair rules that protect the interest and welfare of the transport sector.
The board’s Law Enforcement Unit has already been told to intensify anti-colorum operations nationwide. Pua said the records from the platforms will greatly help in ending illegal truck-for-hire operations.
Background: the P200,000 fine has a port-trucking history
The fine comes from Joint Administrative Order 2014-01, which the then DOTC, LTFRB and Land Transportation Office signed in 2014. PortCalls reported that year that the anti-colorum drive targeted trucks serving Manila’s congested ports, and that at one point only about 60% of an estimated 10,000 Metro Manila trucks had provisional authority to operate.
What it means for logistics stakeholders
- E-commerce platforms and marketplace sellers: Platforms must be able to show that their delivery partners are authorized. Expect stricter checks on the partners they use.
- Last-mile and truck-for-hire operators: Operators without the proper permit risk impoundment and fines. Those with valid permits should have their papers ready, since platforms may ask for them.
- Shippers and 3PLs: Check that any subcontracted trucks carry the required permits. A unit impounded mid-delivery can mean delays and extra costs. If many unregistered units are pulled off the road, capacity could tighten and rates could rise.
