Firms decry P43.47-B losses to heavy traffic

Traffic jams and road accidents stem from many reasons including driver discipline — GRIG C. MONTEGRANDE

MANILA, Philippines — The local courier, express and parcel delivery companies are losing about P43.47 billion every year because of traffic congestion that delays their riders on the roads, according to the Private Express and Messengerial Association of the Philippines (Pemap).

Pemap president Alma Rias, during the Philippines Logistics Summit 2025 last week, shared how riders lose about 18.75 percent of their productivity daily because of heavy traffic, translating to about 59 days of no work in a year.

She explained in the local delivery sector, riders are usually paid daily plus incentives for additional work. Others, she added, are paid per shipment.

READ: Metro Manila motorists spent nearly ‘5 days’ stuck in traffic in 2023

Rias stressed that given the minimum wage in Metro Manila is P645, the annual loss will be equivalent to P38,055 per rider.

In the Philippines, the Pemap official noted that about one in 14 motorcycle riders is also in delivery work. This means about 1.14 million out of the 16 million motorcycle owners are potentially affected, she said.

In summary, the P38,055 loss incurred by 1.14 million riders equals an annual loss of P43.47 billion for the sector. “This figure underscores a harsh reality,” she said.

“Our roads, especially in urban sectors like Metro Manila, Cebu, and Davao, are congested to the point of paralysis,” Rias added.

In Metro Manila, she said there are 140 to 160 vehicles or more per kilometer, showing that the urban roads are overloaded. Rias said Japan has only 70 to 90 vehicles per km, which signifies “efficient use” of roads.

She added that companies can employ technology to optimize the routes of the riders so they can minimize losses because of the traffic.

Rias pointed out the companies’ dealings with the Land Transportation Franchising and Regulatory Board (LTFRB), Land Transportation Office, Department of Trade and Industry, and local governments when securing licenses and permits, raising the need for a one-stop shop instead.

Still, Rias is optimistic about the prospects of the industry this year.

“As we look ahead of 2025, the Philippine e-commerce landscape is experiencing unprecedented growth, presenting significant opportunities for the logistics sector, particularly in last-mile delivery,” she said.

Move It woes

Meanwhile, the Department of Transportation (DOTr) has deferred the implementation of the order of its technical working group (TWG) on motorcycle taxi compelling Move It to reduce by more than half its current fleet and to stop operations in Cebu and Cagayan de Oro City.

According to Transportation Secretary Vince Dizon, Move It, one of the three transport network companies allowed to participate in the ongoing pilot study of MC taxis in Metro Manila, has already filed a motion for reconsideration on the order.

“It will be status quo for now. The LTFRB decision will not be implemented while the motion for reconsideration of Move It (filed on May 1) is being studied. So there will be no action to be taken by the parties until the motion is resolved,” Dizon said in a statement.

LTFRB Chair Teofilo Guadiz III serves as the head of the TWG on MC taxis.

In an earlier order issued by the DOTr TWG on MC taxi, Move It “is found to have exceeded its authorized rider cap allocation and failed to comply with the mandatory reporting requirements on rider activation, deactivation, and reactivation, as prescribed under the motorcycle taxi pilot program.”

The order was signed by Guadiz and LTO chief Vigor Mendoza II as chair and vice chair of the TWG on MC taxi, respectively.

“These violations have resulted in a significant number of motorcycle taxis operating beyond the approved threshold, raising substantial concerns regarding regulatory compliance, safety oversight, and the integrity of the pilot program,” the TWG said.

The DOTr TWG allowed Move It, a subsidiary of Grab Philippines, to continue its operations, but it is directed to impose an immediate and temporary moratorium on the onboarding of new riders for one year.