City councilor warns of tougher competition from Davao’s blue taxis

By Rjay Zuriaga Castor

Councilor Sedfrey Cabaluna, chairperson of the Committee on Transportation, has raised concerns over the approval of franchises for 100 “blue taxis,” warning it could further intensify competition among Iloilo City’s already struggling taxi drivers.

Cabaluna said that in previous consultations with the Association of Taxi Operators in Panay, many drivers reported declining daily income due to growing competition from modernized jeepneys and ride-hailing platforms like Grab.

He added that these challenges are visible as taxi units are often seen queued for hours outside malls while waiting for passengers.

Cabaluna believes there is currently no need for additional taxi units, as demand remains low based on their assessment.

On October 24, he sent a letter to the Land Transportation Franchising and Regulatory Board Region 6 (LTFRB-6), seeking clarification on the feasibility study or data used to justify the issuance of the new franchises.

He requested information on ridership statistics, utilization rates, and the consultation process conducted before approval.

“We really wanted to know how they determined that there is a need for additional units in the City of Iloilo, and that particular need or demand would have been the basis to issue or open units for franchise,” Cabaluna said.

He emphasized that as chairperson of the transportation committee, he is responsible for ensuring that all transport-related developments align with city planning and meet the needs of both operators and commuters.

LTFRB-6 Assistant Regional Director Atty. Salvador Altura confirmed that the franchises were granted to two Davao-based companies operating under the “Blue Taxi” brand, with 50 units each.

He added that the units are currently undergoing meter sealing before they can begin full operations in the city.

Cabaluna said that while franchise issuance is under LTFRB’s authority, the city government was not consulted about the introduction of additional taxi units.

“There were no consultations. I am not even aware that there are available slots, although we would appreciate it if there is a consultation,” he said.

“It would be a significant thing as the end user, as the local government unit, and the community that we have the opportunity to give inputs prior to the awarding of the franchise,” he added.

Cabaluna also warned that adding more taxis could worsen traffic congestion in Iloilo City, citing its limited road space and growing vehicle volume, even during non-peak hours.