1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE, ERIC G. YAP, 
EDVIC G. YAP, and JEFFREY SORIANO 
EXPLANATORY NOTE 
“Habal-habal” or motorcycle ride-sharing has been regarded as one of the most 
popular, if not the primary, modes of informal transportation, particularly in the 
country’s highly congested public roads. On top of that, it is relatively cheap yet fast-
moving. However, despite its practicality and convenience, a large number of the 
motorcycle-for-hires are not registered—making their services basically illegal due to 
lack of insurance coverage and ungoverned by the laws on common carrier. Thus, a 
consequential amount of risk has been correlated to such transportation, affecting a 
significant portion of the country’s public transportation users.  
Given the perils of habal-habal, the government is mandated to ensure that 
transportation network companies (TNC) and Online E-Commerce platform 
providers (OEPP) shall exercise due diligence and reasonable care in accrediting 
motorcycle-for-hire operators and drivers that shall operate under their platforms. 
In this regard, this bill seeks to regulate the operation motorcycles-for-hire, including 
habal-habal, thereby making the said mode of transportation safer and relatively a 
sustainable option for the commuting public, the riders, and other road users.  
In view of the foregoing, approval of this bill is earnestly sought. 
PAOLO Z. DUTERTE 
ERIC G. YAP 
        EDVIC G. YAP 
           JEFFREY SORIANO 
September 6, 2022
12:01 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE, ERIC G. YAP, 
EDVIC G. YAP, and JEFFREY SORIANO 
AN ACT 
REGULATING THE OPERATION OF MOTORCYCLES-FOR-HIRE 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as "Motorcycles-for-Hire 
Act." 
SEC. 2. Declaration of Policy. - The State recognizes the importance of 
transportation in economic development. The recent innovations in technology have 
opened an opportunity for alternative modes of public conveyance, such motorcycles-
for-hire, to thrive as a reliable and accessible mode of transportation. However, 
despite its promise of convenience and fast service, it must be regulated to ensure that 
the interest of the general public is protected. Thus, the State shall allow the regulated 
operation of motorcycles-for-hire to provide the public with an alternative mode of 
public transportation that is sufficient, safe, secure and economical.  
Towards this end, the State shall establish mechanisms and guidelines in 
regulating all the operational aspects of motorcycles-for-hire. 
SEC. 3. Definition of Terms. - As used in this Act: 
a. Motorcycle refers to any two (2)-wheeled motor vehicle without
appendages;
b. Motorcycle-for-hire refers to a motorcycle, duly registered as such under this
Act, and used to carry passengers or goods on a for hire basis, offering its
services to the public;
c.
Multi-homing refers to an approach where an operator may accredit
particular motorcycle-for-hire to more than one transport network
company or Online E-commerce Platform Provider allowing the same to
utilize more than one digital platform in delivering transport services;
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d. Online E-commerce platform provider refers to a natural or juridical person 
whose primary business is to provide the digital platform that connects 
online buyers and online sellers to facilitate the sale of products, goods or 
services through the internet; 
 
e. Operator refers to the person in whose name the motorcycle-for-hire is 
registered; 
 
f. Rider refers to the driver of the motorcycle-for-hire; and 
 
g. Transportation network company refers to an entity which provides pre-
arranged transportation services for compensation using an internet-based 
technology application or digital platform technology to connect clients 
with riders to facilitate a contract of carriage using a motorcycle-for-hire. 
 
SEC. 4. Scope and Application. - This Act shall apply to all aspects of the 
operation of motorcycles used as a common carrier for the transportation of 
passengers or goods which shall include parcels and mail. This Act shall not apply to 
motorcycles directly owned by entities and used exclusively in the line of business for 
delivery of goods and other services. 
 
SEC. 5. Motorcycles-For-Hire as Common Carriers. - The operation of 
motorcycles-for-hire is imbued with public interest. As such, the same shall be 
governed by the applicable provisions of the Civil Code of the Philippines and other 
pertinent laws, rules and regulations on common carriers, particularly on the required 
degree of diligence to be observed in the course of transporting passengers or goods, 
and on the presumption of culpability in case of breach of a contract of carriage. A 
transportation network company (TNC) or an Online E-Commerce platform provider 
(OEPP) should exercise due diligence and reasonable care in accrediting motorcycle-
for-hire operators and drivers that shall operate under their platforms. 
 
SEC. 6. Registration of Motorcycles-For-Hire. - A motorcycle intended to be 
used as a motorcycle-for-hire must be duly registered with the Land Transportation 
Office (LTO) in accordance with the requirements set forth in Section 7 of this Act. The 
LTO shall ensure the roadworthiness of all motorcycles-for-hire before their 
registration, or any renewal thereof. 
 
SEC. 7. Standards and Specifications of Motorcycles-For-Hire. -  The 
Department of Transportation (DOTr), upon the recommendation of the Department 
of Trade and Industry - Bureau of Philippine Standards (DTI-BPS) and LTO, shall 
prescribe the standards and specifications of motorcycles that may be allowed to 
operate as motorcycles-for-hire, taking into consideration the safety of the riders and 
Passengers. 
 
No modifications shall be made on any motorcycles-for-hire, except for the 
installation of the appropriate accessories, such as motorcycle bracket, top box, 
luggage carrier, saddlebag, step board or foot rest, speed limiter or monitoring 


 
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devices, in accordance with the standards and specifications prescribed by the DTI-
BPS and as approved by the LTO under existing laws, rules and regulations. 
 
SEC. 8. Franchising of Motorcycles-For-Hire. - The franchising of motorcycles- 
for-hire in metropolitan and urbanized areas with an existing and operating TNC or 
OEPP is vested in the Land Transportation Franchising and Regulatory Board 
(LTFRB). The LTFRB shall set forth in the franchise granted to operators, the terms 
and conditions to be observed in the operation of motorcycles-for-hire. Such franchise 
shall allow the operator to engage in multi-homing operation upon accreditation with 
other TNCs or OEPPs. 
 
The LTFRB, in coordination with the concerned local government unit in a 
province, city or municipality, shall determine the number of units and areas of 
operation, or routes if applicable, of motorcycles-for-hire in accordance with the route 
rationalization plan or studies adopted by the DOTr: Provided, That in determining the 
number of motorcycle-for-hire units to be operated by TNCs and OEPPs, the demand 
for their services shall be the basis for the LTFRB in the issuance of franchise. 
 
The franchise fee and any other related charges for operating a motorcycle-for- 
hire shall be determined by the LTFRB, subject to the approval of the DOTr.  
 
In areas outside the metropolitan areas or regional hubs and where there is no 
existing or operating TNC or OEPP, the application for a franchise shall be coursed 
through the LGU under which jurisdiction the motorcycle-for-hire intends to operate: 
Provided, That a motorcycle-for-hire may only operate within the territorial 
jurisdiction of the LGU concerned: Provided further, That the LGUs may recommend 
the appropriate number of units that may be allowed to operate in their respective 
jurisdictions based on the demand in the locality. 
 
To ensure the fast and efficient processing of franchises, the LTFRB and LGUs 
shall establish a system of coordination that shall be incorporated in the rules and 
regulations to be issued pursuant to Sec. 21 of this Act. 
 
SEC. 9. Requirements for the Grant of a Franchise or Issuance of a Certificate 
of Public Convenience (CPC). - A CPC shall only be issued to an operator upon 
submission of and compliance with the following requirements: 
 
a. Proof of Filipino citizenship; 
 
b. Proof of accreditation by a TNC or OEPP for motorcycles-for-hire under the 
digital platform or business permit issued by relevant city or municipality 
for motorcycles-for-hire not operating under a TNC or OEPP;  
 
c. Certificate of Registration duly issued by the LTO; 
 
d. Appropriate space to serve as a garage for a franchise applicant intending 
to operate three (3) or more motorcycles-for-hire; 
 


 
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e. Insurance coverage for any death or injury that may occur to a rider, 
passenger or any third party or damage to property by reason or on 
occasion of its operation; and 
 
f. Tax Identification Number or Certificate of Registration as Common Carrier 
issued by the Bureau of Internal Revenue (BIR), if applicable. 
 
SEC. 10. Qualifications of Motorcycle-For-Hire Riders. - The LTO shall 
promulgate the necessary guidelines setting forth the requirements for the issuance of 
a professional driver's license, including the content of theoretical and practical 
examinations that are appropriate for the operation of a motorcycle-for-hire. Only 
riders possessing such professional driver's license shall be allowed to operate 
motorcycles-for-hire. The LTO shall conduct a continuing safety training program for 
licensed riders of motorcycles-for-hire with a curriculum duly certified by the 
Technical Education and Skills Development Authority (TESDA): Provided, That 
licensed riders shall attend at least one (1) safety training seminar every year. 
 
SEC. 11. Accreditation Requirements of TNCs and OPPs. - A TNC or OEPP 
must be duly registered with the Securities and Exchange Commission (SEC). 
 
Before a TNC or OPP which utilizes motorcycles-for-hire in its business 
operations is allowed to operate as such, it must comply with the accreditation 
requirement of Department of Information and Communications Technology (DICT). 
The DTI, LTFRB and DICT shall jointly issue the guidelines that shall govern the 
operations of TNCs and OPPs using motorcycles-for-hire.  
 
The TNCs and OEPPs must possess and maintain the following minimum 
requirements for its accreditation: 
 
a. Proof of Filipino citizenship; 
 
b. Proof of financial capacity; 
 
c. SEC registration; 
 
d. BIR Tax Identification Number; 
 
e. An Accident Quick Response System; 
 
f. A training center, duly certified by the LTO and TESDA, to evaluate and 
determine the competence of riders. The DICT may, as a requirement for 
renewal of accreditation, consider the previous safety record of the TNC or 
OEPP as certified by the LTO during the effectivity of its accreditation being 
applied for renewal. 
 
SEC. 12. Operation of Motorcycle-For-Hire. - Motorcycles-for-hire may be 
allowed to operate using digital booking platforms or designated terminals. To 


 
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maximize its operation, motorcycles-for-hire shall not be bound by a single TNC or 
OEPP but shall be allowed to adopt a multi-homing approach within a particular area 
of operation under the given franchise: Provided, That a motorcycle-for-hire accredited 
under any TNC or OEPP platform may not be allowed to operate as motorcycle-for-
hire without using such platform. 
 
The capacity, nature and character of goods that may be transported, as well as 
the dimensions of the motorcycle bracket or luggage carrier of motorcycles-for-hire, 
shall be determined by the LTFRB in accordance with the standards and specifications 
provided under Section 7 of this Act. 
 
Motorcycles-for-hire shall operate at speeds allowable under Republic Act No. 
4136, otherwise known as the "Land Transportation and Traffic Code", local 
ordinances and other applicable laws: Provided, That in no case shall a motorcycle-for-
hire operate beyond sixty kilometers per hour (60kph). 
 
SEC. 13. Fare Setting. - The fares, surcharges and other transportation fees that 
may be charged by operators, OEPPs or TNCs shall be in accordance with the fare 
structure and within the parameters determined, prescribed and issued by the LTFRB, 
in consultation with the motorcycle-for-hire industry and subject to the approval of 
the DOTr. The fare structure shall take into consideration supply of and demand for 
motorcycle-for-hire services and shall allow dynamic pricing on account of market 
variations based on location and time. The fare structure shall also include the 
maximum percentage that can be charged by the TNCs or OEPPs upon the operators 
or riders on the shipping or delivery fee. The LTFRB shall periodically review the fare 
structure and parameters of determining the applicable fares, subject to the approval 
of the DOTr. The booking system of TNCs and OEPPs shall feature a mechanism that 
enables clients to compare the transportation cost charged by each of the available 
digital platforms. 
 
In the case of motorcycle-for-hire operating outside the digital platforms, the 
fare shall be determined by the LTFRB after a public consultation with LGUs and the 
operators and other stakeholders, with the approval of the DOTr. 
 
SEC. 14. Processing of Personal Information. - Any collection, processing and 
storage of personal information and sensitive personal information involved in the 
registration of motorcycles-for-hire, digital bookings, and other requirements under 
this Act shall be made in accordance with the provisions of Republic Act No. 10173, 
otherwise known as the "Data Privacy Act of 2012." 
 
SEC. 15. Liabilities for Death, Injuries or Damage to Property. - The operator 
and the TNC or OEPP providing the digital platform at the time when the death, 
injury or damage to property occurred in the course of operating a motorcycle-for-
hire shall be jointly and solidarily liable, with rights of subrogation against any party 
at fault: Provided, That the liability of the TNC or OEPP shall not exceed the amount 
of the insurance coverage of the operator. 
 


 
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SEC. 16. Accident Quick Response. - Each TNC or OEPP shall establish a quick 
response team to provide immediate medical care or bring any person injured by the 
operation of the motorcycle-for-hire booked through its digital platform to the nearest 
hospital or medical facility. A function that will allow the rider or passenger to alert 
the quick response team during emergency or road crash shall be part of the booking 
application options of the digital platforms. When necessary, the TNC or OEPP shall 
advance any amount necessary for the admission of such injured person or persons to 
a hospital or medical facility up to the maximum insured amount. 
 
SEC. 17. Enforcement. - To ensure the safe and secure operation of motorcycle- 
for-hire, the LTO shall deputize LGUs and other relevant government agencies to 
assist in the enforcement of traffic rules and regulations, and to monitor strict 
compliance with the provisions of this Act, particularly on the observance of carrying 
capacity and speed limits. The LTO shall establish a centralized database to ensure the 
accurate recording of violations and road crashes involving motorcycles-for-hire and 
for the purpose of applying the penalties as well as other sanctions under this Act. It 
shall publish quarterly and annual reports of such data on its website which shall be 
made accessible to the public. 
 
Consistent with its mandate under Republic Act No. 7924 which created the 
Metropolitan Manila Development Authority (MMDA), the MMDA shall continue to 
exercise its traffic enforcement functions within Metro Manila in furtherance of the 
objectives of this Act. 
 
All violations related to the terms and conditions of a franchise shall be 
endorsed by the LTO enforcement officers, deputized LGU enforcers and MMDA 
personnel to the LTFRB for appropriate action. 
 
The foregoing shall not preclude the TNCs or OEPPs from exercising the power 
to impose sanctions such as suspension or blacklisting of their riders or operators on 
account of violation of internal rules made known to the latter, acts detrimental to 
safety and security and other reasonable or valid grounds. 
 
SEC. 18. Penalties. - The following prohibited acts shall be penalized as 
follows:  
 
a. Any rider who operates a motorcycle-for-hire in violation of traffic rules 
and regulations, carrying capacity and licensing requirement shall suffer 
the maximum penalty imposed under the applicable law, ordinance, rule or 
regulation for such violation. In addition, the LTO shall impose a penalty of 
suspension or revocation of driver's license of an erring rider commensurate 
to the gravity of the offense and frequency of commission. The table of 
penalties shall be included in the rules and regulations to be issued 
pursuant to Sec. 21 of this Act. 
 
b. An operator who allows a rider who does not possess a valid Professional 
Driver's License to operate a motorcycle-for-hire shall, in addition to 


 
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penalties under existing laws and regulations, suffer a penalty of 
suspension or revocation of franchise, after due notice and hearing. 
 
c. The penal provisions of Republic Act No. 7394, otherwise known as the 
"Consumer Act of the Philippines" and Republic Act No. 10173, when 
applicable, shall apply for acts or omissions committed in the course of 
motorcycle-for-hire operation. 
 
SEC. 19. Travel Demand and Operational Data. - To assist the DOTr in 
transportation planning and management, the TNCs and OEPPs shall, not later than 
thirty (30) calendar days after the end of every year, submit to the DOTr their travel 
demand and operational data. 
 
SEC. 20. Transitory Provision. - To ensure a smooth transition in the 
implementation of this Act, the authority and accreditation granted to existing TNCs, 
OEPPs and operators shall continue to be effective until their expiration or six (6) 
months from the promulgation of the rules and regulations to be issued pursuant to 
Section 21 of this Act, whichever comes later. 
 
SEC. 21. Implementing Rules and Regulations. - Within ninety (90) days from 
the effectivity of this Act, the DOTr shall, in coordination with the LTFRB, LTO, DTI- 
BPS, DICT, BIR, TESDA, Department of Health, Department of the Interior and Local 
Government, MMDA, and Philippine National Police-Highway Patrol Group, and in 
consultation with stakeholders, promulgate rules and regulations for the effective 
implementation of this Act. 
 
SEC. 22. Separability Clause. - If for any reason any provision of this Act is 
declared invalid or unconstitutional, the remaining provisions not otherwise affected 
shall remain valid and subsisting. 
 
SEC. 23. Repealing Clause. - All provisions of laws, decrees, executive orders, 
presidential issuances and other administrative rules and regulation, or parts thereof, 
which are incompatible or inconsistent with the provisions of this Act are hereby 
repealed, amended or modified accordingly. 
 
SEC. 24. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,