MC taxi law not setting restrictive caps to promote competition

The House of Representatives is finalizing the long-awaited motorcycle taxi law, which most likely will not enforce strict limits on the number of franchises and units to encourage competition.

At a public hearing on Thursday, Land Transportation Office chief Atty. Vigor Mendoza II, argued that it is still premature to restrict the number of motorcycle taxis that will be permitted.

“To put a cap at this early stage would be premature considering that there are so many factors of consideration in determining demand,” Mendoza said. He also sits as a vice-chairman of the Technical Working Group, or TWG, for the motorcycle taxis.

“Population is one, the need in a certain area is one and all this is a matter of evidence that has to be proven,” he added.

Currently, the motorcycle taxi pilot study is confined to three cities: Metro Manila, Cebu, and Cagayan de Oro.

The government regulators legally licensed only three players—Angkas, MOVE IT, and JoyRide—to take part in the taxi pilot study to provide affordable, safe, and reliable transportation to thousands of daily commuters.

Uniform measure

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

Digital Pinoys pushed for caps in the law due to the dangers posed by the oversupply of motorcycle taxis.

However, 1-RIDER Party-list representative Ramon Rodrigo Gutierrez reiterated that the members of the TWG unanimously agreed that limits should be determined by local government units or LGUs.

Presently, the Department of the Interior and Local Government allows the LGUs to determine the caps on the number of tricycles in their respective jurisdictions.

Gutierrez also alleviated concerns regarding the oversupply of motorcycle taxis.

He emphasized that the bill hammered out by the TWG will ensure that determining the number of franchises to be issued will consider the Local Public Transport Route Plan or LPTRP.

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

“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,” Gutierrez added.

Promote business

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

“A business should promote competition, right? So I do not see the wisdom in limiting the law to certain areas and number of tricycles or motorcycles,” he said.