Motorcycle taxi limit up to LTFRB, LGUs under new law

MANILA, Philippines – No hard caps on the number of motorcycle taxi franchises and units will be set under the motorcycle taxi law now being finalized by the House of Representatives. 

This, as any limits to be imposed will be subject to the evaluation of the Land Transportation Franchising and Regulatory Board (LTFRB).

The development was revealed during the deliberations of the House Committee on Transportation, which on Thursday tackled the substitute bill that would pave the way for the legalization of motorcycles-for-hire, including motorcycle taxis.

During the hearing, Transportation Committee Chairperson and Antipolo 2nd District Rep. Romeo Acop explained that it would be unwise to set caps in the proposed motorcycle taxi law as this would be addressed by competition among players in the motorcycle taxi industry.

“’Di ba ang business talaga is competition? Kaya I do not see the wisdom of i-limit natin ... o ilalagay natin sa batas na for a certain area ganito ang number ng tricycles ... or motorcycles,” said Acop, who pointed out that the Department of the Interior and Local Government currently lets local government units (LGUs) determine the caps on the number of tricycles in their respective jurisdictions.

According to 1-RIDER Party-list Ramon Rodrigo Gutierrez, the members of the Technical Working Group (TWG) assigned to finalize the provisions of the motorcycle taxi bill were unanimous that limits should be determined by LGUs, and “will stand by not having hard caps on the proposed bill.”

During the public hearing, concerns were raised regarding the number of motorcycle taxis that would be allowed to ply Philippine roads

Ronald Gustilo of Digital Pinoys said his group was pushing for caps in the law due to the dangers of the oversupply of motorcycle taxis. 

Gustilo expressed fears that with an oversupply of motorcycle taxis, “magiging mas pahirapan po para sa kanila ‘yung magkaroon ng booking kasi kung sobra-sobra po sila versus dun po sa demand ng passengers, mas marami po ang rider na matetengga.”

Gutierrez assuaged concerns regarding the oversupply of motorcycle taxis and emphasized that in the bill hammered out by the TWG, “in determining the number of franchises to be issued, the LTFRB shall take into consideration the LPTRP (Local Public Transport Route Plan).”

“The LTFRB shall approve the routes and number of units that may be allowed ... there is no question on the fact on whether or not there will be limits, because there will be limits,” added Gutierrez.

The LPTRP is a plan detailing the route network, mode and required number of units per mode for delivering land transport service.

Land Transportation Office Assistant Secretary Atty. Vigor Mendoza II, for his part, reiterated the position of the TWG and said that the law should not specify caps on the number of motorcycle taxis as this should be based on data and evidence.

“To put a cap at this early stage would be premature considering that there are so many factors of consideration in determining demand. Population is one, the need in a certain area is one — and all this is a matter of evidence that has to be proven,” Mendoza pointed out.