EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S. B. NO. 351
ol ti)r
*19 JUL11 All S4
RECL ' £ L /!.;
Introduced by SENATOR JOEL VILLANUEVA
AN ACT RECOGNIZING ALTERNATIVE MODES OF PUBLIC 
TRANSPORTATION, PROVIDING REGULATIONS GOVERNING 
THEIR OPERATIONS, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Technology has opened up a lot of opportunities to people. It has enabled 
people from all over the world to communicate with each other, and be 
updated of each other’s lives as if no distance divides them.
Technology has also introduced massive changes in the transportation 
sector. One of this changes is the ridesharing model, which is a system that 
connects private drivers and vehicles with riders seeking rides at an agreed 
upon price, through the use of an online application or model.1
In the Philippines, this ridesharing model has also been seen with the 
entry of ride-hailing companies such as Grab and Uber. A study of online 
sentiments conducted by the Research and Technology Lab found that 
46.47% of online Filipinos in Metro Manila prefer Transportation Network 
Vehicle Service (TNVS) as their primary source of transportation.2 According 
to a study presented by Grab, one of the leading TNVS companies, only 
35,000 vehicles service an estimated 600,000 bookings everyday.3
1 Hahn, Robert and Metcalfe, Robert "The Ridesharing Revolution: Economic Survey and Synthesis " Oxford 
University Press, Volume IV: More Equal By Design: Economic Responses to Inequality 
Retrieved from: 
https://www.brookinqs.edu/wp-content/uDloads/2017/01/ridesharinq-oup-1117-v6-brookinqs1.pdf (date last accessed: 
July 1. 2019)
2 2018, June 3 
“Study shows TNVS remain popular among Metro Manila commuters." Retrieved from: 
https://businessmirror.com.Dh/2O I8/O6/O3/studv-shows-tnvs-remain-Dopular-amonq-metro-manila-commuter5/ 
(date 
last accessed: July 1, 2019)
3 2018, 
May 
2 
"Grab: 
Only 
35,000 
drivers 
serve 
600,000 
bookings 
per 
day " 
Retrieved 
from:
https://www.rappler,com/business/201597-qrab-philippines-drivers-not-enouqh-passenqer-bookinqs 
(date 
last 
accessed: July 1, 2019)


Unfortunately, while the demand for TNVS remains high, the legal 
framework on their operation, as well as that of transportation network 
companies (TNCs) remains unclear.
This bill seeks to address this gap by clarifying the responsibilities of 
rideshare support companies, their liability, and the licenses required of them. 
Under this bill, a rideshare support company must obtain a permit from the 
Land Transportation Franchising and Regulatory Board in order to operate. In 
turn, the rideshare support company must accredit rideshare network drivers 
after determining their fitness to act as such. This bill also clarifies that the 
rideshare network vehicles do not need to obtain any other permit other than 
the vehicles’ registration with the Land Transportation Office (LTO).
This bill also makes the rideshare support company liable for injuries or 
death to passengers aboard a rideshare network vehicle for the company’s 
failure to exercise extraordinary diligence in the selection and supervision (as 
required under this bill) of rideshare network drivers. 
Rideshare support 
companies are also required to maintain an insurance to cover for passenger 
injuries arising from motor vehicle accidents during a pre-arranged ride in an 
amount of at least Two Hundred Thousand Pesos (Php200,000.00) per 
passenger.
The immediate passage of this bill is earnestly sought.
SENATOR J & L  VILLANUEVA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE 
S. B. NO. 351
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JUL U 
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RECtVtDl:. 
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Introduced by SENATOR JOEL VILLANUEVA
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AN ACT RECOGNIZING ALTERNATIVE MODES OF PUBLIC 
TRANSPORTATION, PROVIDING REGULATIONS GOVERNING 
THEIR OPERATIONS, AND FOR OTHER PURPOSES
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 the "Alternative Modes 
of Transportation Act."
SEC 2. Declaration of Policy. -  It is hereby declared the policy of the State 
to engage in dynamic technological innovations and allow the provision of 
affordable transportation options, while guaranteeing the safety and well being 
of the riding public.
SEC 3. Definitions. -  As used in this Act, the following terms shall mean:
a) 
Pre-arranged ride refers to the provision of transportation by a 
rideshare network driver to a rideshare network rider beginning when a 
rideshare network driver accepts a request made by a rideshare network 
rider by means of a digital network. A prearranged ride does not include 
a shared expense carpool or vanpool arrangement or any other type of 
arrangement or service in which the driver receives a fee that does not 
exceed the driver's costs associated with providing the ride.
b) 
Rideshare network driver refers to an individual who (a) satisfies the 
requirements provided in Section 5 of this Act, (b) receives requests for 
prearranged rides from potential passengers by means of a digital 
network, and (c) uses a rideshare network vehicle to offer or provide a 
pre-arranged ride for compensation upon connection through a digital 
network.


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c) 
Rideshare network rider refers to an individual who has obtained an 
account to use a digital network, or another individual designated by the 
account holder, to receive a prearranged ride.
d) 
Rideshare network vehicle refers to a vehicle seating less than fifteen 
(15) passengers, including, but not limited to, any passenger automobile, 
truck, motorcycle, or similar vehicle, that is owned, leased, rented, or 
authorized for use by a rideshare network driver and that has been 
approved by a rideshare support company to be used for providing 
prearranged rides.
e) 
Rideshare support company refers to a duly registered sole 
proprietorship, partnership, or corporation organized under the laws of 
the Philippines that supports the provision of pre-arranged transportation 
services by connecting rideshare network drivers with rideshare network 
riders, for compensation using Internet-based technology application or 
digital platform technology, including accrediting rideshare network 
drivers in accordance with the provisions of this Act.
Sec 4. Permit. -  A person shall not operate a rideshare support company 
without first having obtained a certificate of accreditation from the Land 
Transportation Franchising and Regulatory Board (LTFRB) pursuant to this 
Act; Provided, That any entity performing the functions of a rideshare support 
company operating in the Philippines before the effective date of this Act may 
continue operating pending the issuance of the permit required under this Act; 
Provided however, That the entity shall immediately cease operation upon 
denial of its application.
The permit required under this Section shall be issued to an applicant- 
rideshare support company that meets the following requirements:
a) 
Has established a process, consistent with Section 5 of this Act, to 
enable individuals to become rideshare network drivers;
b) 
Requires criminal history checks for individuals seeking to become 
rideshare network drivers and complies with all other requirements set 
by the LTFRB in determining the fitness of rideshare network drivers;
c) 
Provides proof of its compliance with the insurance requirements set 
forth in Section 7 of this Act;
d) 
Provides an undertaking to comply with all obligations of a rideshare 
support company provided in this Act and its implementing rules and 
regulations;
e) 
Pays a fee of a least Ten Thousand Pesos (Phpl0,000.00), which must 
be paid annually: Provided, That such amount may be adjusted upon 
prior consultation with relevant stakeholders.


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The permit issued under this Section shall be limited to a geographical area 
as may be prescribed by the LTFRB upon a determination that the services 
provided by a rideshare support company is necessary therein.
SEC 5. Rideshare Network Driver Requirements. -  Before allowing an 
individual to act as a rideshare network driver, the rideshare support company 
shall require the individual to provide relevant information, including, but not 
limited, to the driver’s address, age, license number, motor vehicle 
registration, automobile liability insurance, and such other information as may 
be deemed necessary in order to determine the applicant’s fitness to become 
a rideshare network driver; Provided, That a rideshare support company shall 
only permit an individual to act as such if the individual:
a) 
Has not been convicted of any felony punishable with imprisonment of 
not less than two (2) years, within the past seven years, as shown by a 
criminal history report or clearance or other similar document issued by 
the National Bureau of Investigation;
b) 
Possesses a valid non-professional or professional driver's license, and 
who has not committed more than five (5) violations of traffic and other 
related laws and regulations within the last two (2) years;
c) 
Provides proof of valid registration for the motor vehicle(s) to be used in 
providing pre-arranged rides;
d) 
Provides proof that the rideshare motor vehicle is covered by a third 
party liability insurance to cover for passenger injuries in the amount of 
at least One Hundred Thousand Pesos (Phpl00,000.00); and
e) 
Is at least eighteen (18) years of age.
Provided, further. That in determining the fitness of the applicant-rideshare 
network driver, the rideshare support company may:
a) 
Conduct, by itself or with the assistance of a third party, a criminal 
background check for each individual;
b) 
Request the LTFRB to determine the fitness of the applicant-rideshare 
network driver pursuant to the rules and regulations set by the LTFRB; 
or
c) 
Require the submission of other requirements as it may deem necessary 
and expedient to ensure the fitness of the applicant-rideshare network 
driver.
Provided finally. That the rideshare support company shall have the 
continuing obligation to supervise and assess the performance of all 
accredited rideshare network drivers, and, if necessary, suspend or revoke 
the accreditation of a rideshare network driver.


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For the avoidance of doubt, no further registration shall be required of 
rideshare network vehicles, aside from the motor vehicle registration with the 
Land Transportation Office (LTO).
SEC 6. Identification of Rideshare Network Drivers and Vehicles. -  A
rideshare support company shall ensure that a picture of the rideshare 
network driver and the license plate of the rideshare motor vehicle is 
displayed to the rideshare network rider before the rider enters or boards the 
vehicle.
SEC 7. Insurance Requirement. -  The rideshare support company shall be 
required to procure a personal accident insurance to cover for passenger 
injuries arising from motor vehicle accidents during a pre-arranged ride in an 
amount of at least Two Hundred Thousand Pesos (Php200,000.00) per 
passenger.
SEC 8. Liability of Rideshare Support Company. -  In case of accident, 
injury or death of the passenger while aboard the rideshare network vehicle, 
the rideshare support company shall be civilly liable for failure to exercise 
extraordinary diligence and reasonable care in the accreditation and 
supervision of rideshare network drivers, except if such act is due to acts or 
omissions outside of the control of the rideshare support company. For the 
avoidance of doubt, the liability herein provided is separate and distinct from 
the civil liability of a rideshare support company imposed in other laws.
In addition, the rideshare support company shall be liable for an administrative 
fine of up to One Million Pesos (Php1,000,000.00) depending on the severity 
of the violation, the number of passengers affected, and other factors as may 
be determined by the LTFRB in appropriate rules and regulations.
SEC. 9. Operational Requirements. -
a) 
The rideshare support company shall ensure that the fare or fare 
calculation method is disclosed to the rideshare network rider at all 
times, guided by the following principles:
1) 
There are no maximum fares or rates;
2) 
A minimum or flat fare or rate may be charged;
3) 
The fares or rates may be based on time and distance;
4) 
Fares or rates may adjust dynamically from trip to trip.
The LTFRB, niotu proprio or upon appropriate complaint, shall determine, 
prescribe and approve and periodically review and adjust, reasonable fares, 
rates and other related charges, relative to the operation of rideshare support 
companies.


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b) 
A rideshare network driver may travel on any route selected by the 
rideshare network rider, including those with predetermined drop-off and 
pick-up points, or on a route selected by the rideshare network driver 
Provided, That the LTFRB may, when necessary to control traffic and 
the number of vehicles-for-hire plying the area, limit the number of 
rideshare network vehicles operating in an area.
SEC. 10. Cap or Limit on Volume of Vehicles. -  
There shall be no 
immediate cap or limit on the number of vehicles that may operate under a 
rideshare support network. Provided, that the Land Transportation Office 
(LTO), LTFRB, the metropolitan development councils and other pertinent 
government agencies shall conduct an annual study on the total volume of 
vehicles plying in an area, the total number of rideshare motor vehicles 
therein, their impact on the traffic situation in the area, to determine the 
reasonableness of the total number of rideshare motor vehicles therein, with 
due regard to the demand for the continuous operation of such motor 
vehicles.
SEC 11. Electronic Invoices. -
a) 
Following the completion of a pre-arranged ride, the rideshare support 
company and the rideshare network driver shall ensure that an electronic 
invoice is transmitted to the rideshare network rider, which shall include, 
but not be limited, to:
1) 
The origin and destination of the trip;
2) 
The total time and distance of the trip;
3) 
The first name of the rideshare network driver;
4) 
An itemization of the total fare paid, if any.
b) 
Notwithstanding subsection (a) above, nothing herein shall prevent the 
rideshare network driver to directly provide a receipt to a rideshare 
network rider, or to designate the rideshare support company to provide 
such receipt to the rider.
c) 
The Bureau of Internal Revenue (BIR) shall establish mechanisms to 
ensure that the receipts issued under this Section are compliant with the 
applicable provisions of the Tax Code on the proper form and issuance 
of receipts.
SEC 12. Records. -  A rideshare support company and the rideshare network 
driver shall keep in its records the individual trip records and the receipts 
issued therefor for at least five (5) years from the date each trip happened.


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SEC 13. Audit Procedures; Confidentiality of Records. -
a) 
For the sole purpose of verifying that a rideshare support company is in 
compliance with the requirements of this Act, the LTFRB shall have the 
authority to annually inspect the records of the rideshare support 
company; Provided, That the audit shall take place at a mutually agreed 
location; Provided further, That such inspection shall be done with due 
regard to the provisions of the Data Privacy Act of 2012; Provided, 
furthermore. That nothing herein shall prevent the LTFRB, motu proprio 
or upon complaint, from inspecting the records of a rideshare support 
company, with due regard to the provisions of the Data Privacy Act, 
unless the disclosure of personal information is necessary for the 
resolution of the complaint.
b) 
Any records furnished to the LTFRB under this Act shall be confidential 
and shall not be disclosed to any third party without prior written consent 
of the rideshare support company and/or the rideshare network driver or 
rider.
SEC 14. Limitations on Rideshare Support Companies. -
a) 
A rideshare support company shall not be deemed to:
1) 
Control, direct or manage the rideshare network drivers or 
rideshare network vehicles, except as expressly provided in this 
Act or as agreed by the parties in writing; or
3) 
Operate a common carrier.
b) 
Rideshare network drivers shall not be deemed employees of rideshare 
support companies unless otherwise agreed upon in writing by the 
parties; Provided, that:
1) 
There are no limitations on the number of hours that, and when, a 
rideshare network driver must be logged on to the digital network; 
and
2) 
There are no restrictions on the ability of the rideshare network 
driver to engage with other digital networks.
SEC 15. Enforcement. -
a) 
A rideshare support company that has violated any provisions of this Act 
shall be liable, after notice and hearing, for an administrative fine of up to 
Five Flundred Thousand Pesos (Php500,000.00), or suspension or 
revocation of its accreditation as rideshare network company, upon a 
determination by the LTFRB that the rideshare support company has 
committed repeated violations of any provisions of this Act and that the 
same endangers the public.


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b) 
In the determination of fines to be imposed under this Section, the 
LTFRB shall take into consideration the following;
1) 
The severity of the violation;
2) 
Good faith effort to remedy the violation; and
3) 
History of previous violations.
c) 
The LTFRB shall resolve to expeditiously process all applications to 
ensure the continuous and immediate availability of qualified rideshare 
network drivers.
SEC 16. Controlling Authority. -  The LTFRB shall be the lead implementing 
agency in carrying out the provisions of this Act.
SEC 17. Implementing Rules and Regulations. -  The LTFRB, in 
consultation with relevant stakeholders, shall issue the rules and regulations 
necessary to implement the provisions of this Act within ninety (90) days from 
its effectivity. For the avoidance of doubt, the implementing rules and 
regulations issued for this purpose shall not impose additional accreditation or 
permit requirements other than those provided under this Act.
SEC 18. Separability Clause. -  If any section or part of this Act is held 
unconstitutional or invalid, the remaining section not otherwise affected shall 
remain valid.
SEC 19. Repealing Clause. -  All provisions of existing laws, presidential 
decrees or issuances, executive orders, letters of instruction, administrative 
orders, rules and regulations contrary to or inconsistent with the provisions of 
this Act are hereby repealed, amended, or modified accordingly.
SEC 20. Effectivity. -  This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette and in at least two (2) newspapers 
of general circulation.
Approved,