Department of Transportation (DOTr) Secretary Giovanni "Banoy" Lopez clarified on Wednesday, April 15, that public utility vehicle (PUV) operators are not required to install GPS devices to participate in the government’s Net Service Contracting Program.
Speaking during the Kapihan sa Manila Bay interview, Lopez said alternative tracking methods such as QR codes and manual monitoring may be used, although he strongly encouraged GPS installation for faster and more efficient compensation.
“For those who don’t want GPS, may options tayo… but we encourage it kasi mas mapapadali ang bayad,” he said.
The DOTr chief also addressed concerns over the cost of GPS devices, disputing claims that operators are being charged as much as ₱6,000.
He explained that based on the agency’s initial canvassing, accredited service providers offer GPS units for only ₱500 per month, inclusive of the device. “All of them, 500 pesos per month… renta lang,” Lopez emphasized.
He added that the government has already factored in the cost of GPS rental into driver compensation, estimating it at around ₱25 per day, with slight adjustments to ensure operators can recover expenses.
With GPS, drivers can receive payments within three to five days, compared to delays under manual verification systems.
Lopez acknowledged past issues of delayed payments due to manual tracking and said the DOTr, along with the Land Transportation Franchising and Regulatory Board (LTFRB), is exploring more flexible solutions to ensure wider participation, especially among smaller operators.
The clarification comes as the government continues expanding the service contracting program to support PUV drivers and commuters amid rising fuel costs, while improving efficiency and transparency in fare subsidies.
