LTFRB to motorcycle taxi operators: Explain cap breach
Is there an oversupply of motorcycle taxis in Metro Manila?
The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a show cause order (SCO) on two of the three ride-hailing firms operating in the national capital for allegedly breaching the government-mandated cap for the number of motorcycle taxi riders.
In an SCO dated Dec. 11, LTFRB Chair Teofilo Guadiz III, head of the Motorcycle Taxi Technical Working Group (MC Taxi TWG), directed Angkas and MoveIt to explain why they should not be suspended or removed from the government’s ongoing motorcycle taxi pilot study due to the violations.
According to the MC Taxi TWG, the companies allegedly exceeded the allocated rider cap which currently stands at 45,000 in Metro Manila. They also failed to report the activation, deactivation and reactivation of their riders.
The companies were summoned to appear before the MC Taxi TWG at the LTFRB central office in Quezon City on Wednesday.
In a message to the Inquirer on Monday, Noli Eala, Joyride senior vice president for corporate affairs, said he was unaware whether their company received a similar SCO.
At press time Monday, Eala had not replied to the Inquirer’s follow-up question while the LTFRB had yet to respond to queries about an SCO to Joyride.
MOA with SSS
The MC Taxi TWG specifically pointed to Angkas’ violation when it announced, through its press release, that it signed a memorandum of agreement with the Social Security System (SSS) to provide coverage to 50,000 of its partner bikers in Metro Manila, Metro Cebu and Cagayan de Oro—more than the 30,000 partner-riders it had declared. SSS would later clarify that the partnership would only cover 30,000 Angkas riders.
George Royeca, Angkas chief executive officer, confirmed the SCO but pointed the blunder to MoveIt’s admission during a Dec. 10 hearing of the Senate committee on public services.
“This may have stemmed from the recent Senate hearing, during which it was alleged that MoveIt admitted to exceeding the caps. Nonetheless, we acknowledge receipt of the show cause notice and are seeking clarification on the basis for its issuance and will address this matter in the appropriate forum,” Royeca said.
“Rest assured, we take the time to train our drivers and implore the industry to keep to the same standards for the safety of the riding public,” he added.
Proposed law
The LTFRB earlier denied claims of a surge in the number of motorcycle taxis in Metro Manila, saying the 45,000 slots it gave had not increased over the past three years.
There are 15,000 MC taxi slots distributed each to Angkas, Joyride and MoveIt (which was acquired by Grab Philippines in 2022), the three original proponents of the pilot study, which began in 2019.
In April, the LTFRB approved 8,000 slots to be equally allocated to four transport network companies, namely Para Xpress (Xpress), Taxsee Philippines (Maxim), Grab (GrabBike) and Dingdong. But they could only operate in Central Luzon and Calabarzon regions.
Motorcycle taxis have been operating for several years now, but remain under the “pilot study” program which began in June 2019 following congressional approval.
Originally set to end on Dec. 26, 2019, the pilot test was extended until March 23, 2020, for further study. The COVID-19 pandemic, however, delayed the deliberations on the issue and prompted the government to extend it again.
The pilot study was once again set to conclude on May 31 this year, but Congress indefinitely extended it pending the passage of a law to regulate this new mode of public transportation.
On July 30, the House of Representatives approved House Bill No. 10424, or the proposed Motorcycle-for-Hire Act, which allows the operation of motorcycles for the transportation of passengers and goods, including parcels and mail.
Its Senate counterpart, however, is pending before the committee on public services.
Once signed into law, motorcycle taxis will be regulated by the LTFRB regarding fares and other fees that they may charge.
