Here’s what you need to know about the Motorcycle-for-Hire Regulation Act

Motorcycle taxis take a step closer to full legalization
by Aris Ilagan | Oct 16, 2021
PHOTO: Shutterstock

The Technical Working Group (TWG) of the Department of Transportation (DOTr) has formally submitted a report on the motorcycle-taxi pilot run to the House Committee on Transportation. It will be the basis for the filing of a substitute bill to legalize motorcycle ride-hailing companies.

TWG chairman and congressman John Rey Tiangco presented the report to the committee. Currently, 18 proposed measures on making motorcycle taxis legal are filed in the lower chamber.

“The objective of this measure is to bring this mode of transportation to proper regulation to ensure that, regardless of its promising potentials, the economic safety and other aspects of its operations are properly carried out,” said Tiangco before the House panel.

The details of the TWG report came from the series of pilot runs that started in July 2019 and featured three motorcycle companies-: Angkas, JoyRide, and Move It. Here are the salient points of the proposed Motorcycle-for-Hire Regulation Act:

Continue reading below ↓

1) Only motorcycles for hire

The substitute bill won’t cover motorcycles directly owned by entities and used exclusively for the delivery of goods and services (meaning units owned by food chains and driven by employees).

2) Standard specs

The Department of Trade and Industry (DTI) and the Land Transportation Office (LTO) shall be allowed to establish the standard specifications of motorcycles that will be used as common carriers.

Continue reading below ↓
Recommended Videos

3) LTFRB franchising

The Land Transportation Franchising and Regulatory Board (LTFRB) shall be authorized with the franchising of motorcycles for hire. For those outside of metropolitan areas where there are no transport network companies (TNC), applications will go through local government units (LGUs).

Under the proposed bill, LGUs have the authority to recommend how many motorcycle taxis can operate in their jurisdictions.

4) Multihoming approach

The operators shall be allowed to use multihoming to maximize operations, as well as their fleet’s reliability and performance.

Continue reading below ↓

5) Digital requirement

Riders and operators will be required to use digital platforms in areas where there are existing TNCs to prevent the proliferation of habal-habal operations.

6) 60kph maximum speed

The bill sets the maximum speed of motorcycle taxis at 60kph subject to speed limits in some localities per Republic Act No. 4136 or the Land Transportation and Traffic Code.

7) DICT-accredited TNCs

The Department of Information and Communications Technology (DICT) will manage the accreditation of TNCs with motorcycles-for-hire.

8) LTFRB-approved fare matrix

Fares charged by TNC operators shall be in accordance with the LTFRB-prescribed fare structure. Setting the fare rates for those operating outside of digital platforms will require public consultation with LGUs and other stakeholders.

9) Data Privacy Act

The bill shall allow the application of the provisions of Republic Act No. 10173 or the Data Privacy Act for the collection, processing, and storage of personal data in the course of motorcycle-taxi operations.

Continue reading below ↓

10) Operator-rider liability

The legal responsibility of the operator and the rider of TNCs shall be joint and solidary for any death, injury, or damage to property during the course of operations.

11) Emergency response teams

The bill requires TNCs to form quick-response teams that will provide immediate medical attention in the event of an accident.

12) Sanctions

Penalties will be imposed on violators of the provisions of the Land Transportation and Traffic Code, the Data Privacy Act, consumer laws, and other local ordinances, rules, and regulations.

13) Transition period

A transition period of six months shall take place from the promulgation of the Motorcycles-for-Hire Act and its implementing rules and regulations (IRR).

NOTE: This article first appeared on . Minor edits have been made.

See Also

Top Gear Philippines is now on Quento! Click here to download the app and enjoy more articles and videos from Top Gear Philippines and your favorite websites.

PHOTO: Shutterstock
  • Quiz Results

  • TGP Rating:

    Starts at ₱

    TGP Rating:
    Starts at ₱