Filling the gap

Just recently, Land Transportation Franchising and Regulatory Board (LTFRB) chairman Teofilo Guadiz III called on Congress to pass a law that would regulate the motorcycle (MC) ride-hailing sector to fill the gaps in the imperfect transportation system.

With the House of Representatives having approved its version of the Motorcycles-for-Hire Act, Guadiz emphasized that the ball is now in the Senate’s court and that hopefully, the law can be passed before the 19th Congress ends.

Guadiz explained that the country needs this for purposes of flexibility in the transport system and to fill the gap when the number of jeepneys and buses is not enough, not to mention that this would help the livelihood of roughly 60,000 riders who earn an average of P1,000 to P2000 per day.

He also stressed that the failure to enact the law for MC taxis will worsen the current problem of habal habal or illegal motorcycle rides.

During a recent Senate hearing, Sen. Grace Poe said that it is the ripe time to legalize motorcycles as a form of transportation in the Philippines, given the overwhelming data, backed by consumer demand, supporting the permanent integration of motorcycles into the public transportation landscape.

In July last year, the House approved on third and final reading a measure recognizing motorcycle taxis as common carriers and public utility vehicles for the transport of passengers and goods, including parcels and mail. They are required to register with the Land Transportation Office, which is tasked with ensuring their roadworthiness and to get authorization from the LTFRB.

The House version provides that only those holding a professional driver’s license will be allowed to operate, and at a speed limit of 60 kilometers per hour. Meanwhile, motorcycle taxi platform providers and online e-commerce platform providers must register with the Securities and Exchange Commission.

Motorcycle taxis are currently allowed on the streets because of a six-month pilot test in Manila, Cebu and Cagayan de Oro approved by Congress in June 2019 to determine their reliability and safety as a means of public transport. It was extended indefinitely pending the passage of a law regulating the sector.

Based on a technical working group report on the pilot study, there are a total of 68,036 registered MC taxis, 42 percent of which are affiliated with Angkas.

Guadiz stressed that the pilot study owes its legal existence to the current 19th Congress and if this Congress bows out in June without approving the law, then MC taxis will again become illegal. The last session day of Congress is set for June 13, 2025.

For many Filipinos who cannot afford to buy their own vehicles, the transportation network vehicle service (TNVS) may be the only option.

According to a recent study by the International Transport Forum, Filipinos still opt to avail themselves of ride hailing services due to the limited and overcrowded public transport. It recommended for the TNVS sector to be integrated in the broader array of public transportation services in Metro Manila to manage traffic congestion and recover daily economic losses caused by heavy traffic in the region.

In addition, a 2023 study by the Center for Research and Communication of the University of Asia & the Pacific revealed that the TNVS and delivery sector contributed as much as P165.6 billion to the country’s gross domestic product from 2019 to 2021.

But the Forum’s 2024 study reminded stakeholders about the importance of road safety, revealing that 45 percent of fatal injuries and 52 percent of non-fatal injuries caused by road accidents in Metro Manila involved motorcycle drivers in 2022.

According to news reports, a ride-hailing platform was warned by the LTFRB after it onboarded driver partners lacking a professional driver’s license. The LTFRB’s pilot program for MC taxis mandated a professional driver’s license for riders or those transporting passengers to ensure safety. If a TNC or public utility vehicle company allows a non-pro driver to use these vehicles in ferrying passengers, that’s grounds for suspension or even revocation of their license, the agency said.

But the MC taxi riders who were removed from the app claimed that the company failed to fulfill its commitment to assist them in securing professional licensing. They were later reinstated only after the company drew flak from the legislators and the public which compelled it to partner with the LTO to fulfill its promise.

The same company was issued a show-cause order by the LTFRB for breaching the government-mandated rider cap for MC taxis.

It has been emphasized that the government should not only acknowledge the need to recognize and regulate the MC taxi industry but should also focus on road safety and labor protection as compromising these will only erode and invalidate the milestones already achieved and contributed by the industry.

For comments, email at [email protected]