Republic of the Philippines
Housn oF REPRESENTATlvHs
Quezon City, Metro Manila
NINETHHNTH CONGRESS
Second Regular Session
House Bin No. 1C205
Introduced by Representative Midy N. Cua
Lone District, Quirino
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AN ACT
REGULATING THE OPERATION 0F MOTORCYCLES-FOR-HIRE
EXPLANATORY NOTE
The proposed bill seeks to regulate the operation of motorcycles-for-hire. Over the last few years, the
country has witnessed the proliferation of motorcycles-for-hire colloquially known as fe¢b¢J-7!czbczJ or
cz#gk¢s. This mode of transportation is considered as a convenient and cheap means of transportation.
However, the non-regulation of motorcycles-for-hire poses danger and risks to safety and welfare of
the riding public.
The proposed bill addressed the danger and risks of non-regulation through the following:
•     Mandating registration of motorcycles-for-hire
•     Establishing standards and specifications of motorcycles-for-hire
•     Providing guidelines for the franchising of motorcycles-for-hire
•     Establishing qualifications of motorcycles-for-hire riders
•     Providing guidelines for the accreditation of tranaport network companies (TNC) and online
e-commerce platform providers
•     Establishing rules for the operation of motorcycles-for-hire
•     Prescribing a fare setting mechanism
•     Imposing guidelines on the processing of personal information
•     Clarifying liabilities for death, injuries, or damage to property
In summary, the proposed bill provides a comprehensive regulatory framework designed to promote
safety,  fairness,  and  accountability  that  will  further  increase  the  convenience  for  the  community
public availing motorcycle-for-hire services.
In view of the foregoing, approval of this measure is earnestly sought.
\1zJ
MID+N. CUA
Lon:;P±::i:c„t:%::rino


Republic of the Philippines
HOUSE 0F RHPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HouseBinNo.1fl205
Introduced by Representative Midy N. Cua
Lone District, Quirino
AN ACT
REGULATING THE OpHRATloN oF MOTORcycLEs-FOR-HIRn
Be it enacted by the Senate and House Of Representatives Of the Philippines in Congress assembled:
SECTION I. S7!orz rz.£/e. -This Act shall be known as the "Motorcycles-for-Hire Act."
SEC.  2.  Dcc/flra/I.o72  a/ Po/I.c}7.  -The  State  recognizes  the  importance  of transportation  in
economic  development.   The  recent  innovations   in  technology  has  opened  an  opportunity  for
alternative  modes  of public  conveyance,  such  as  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
op erational aspects of motorcyc les-for-hire.
SEC. 3. De¢#j-fro72 a/re7.7„s'. -As used in this Act:
a)  A4loforeycJc refers to any two (2)-wheeled motor vehicle without appendages;
b) Moforc)jc/e-/or-4zrfe 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)  Mw/tr.-fao"z.ng refers to an approach where an operator may accredit a 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 platfom in delivering transport services;
d)  O#/I.#e E-commerce p/aoroi7# provl.der refers to a natural or juridical person whose primary
business is to provide the digital platform that cormects online buyers and online sellers to facilitate the
sale of products, goods or services through the internet;
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e)  Opcrfffor refers to the person in whose name the motorcycle-for-hire is registered;
f)  Rz.der refers to the driver of the motorcycle-for-hire; and
g)  rrtz#sporftzfz.o#   #en4/ark   comp¢#);   refers   to   an   entity   which   provides   pre-arranged
transportation  services  for  compensation  using  an  internet-based  technology  application  or  digital
platform  technology  to  cormect  clients  with  riders  to  facilitate  a  contract  of  carriage  using  a
motorcycle-for-hire.
SEC.  4.  Scope  a#cJ 4zxp/I.ca/I.o#.  -  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. A4loforeyc/es-For-fJz.7ie as Com"o73 C¢rrz.erg. - 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 under their platforms.
SEC.  6.  Registration  Of Motoraycles-For+Hire.    -  A "otoleycle  intended to be  used  as  zL
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.
EEC.  I.   Standards   and   Specifications   Of  Motorcycles-For-Hire.   -The  Daparfu!eat  o£
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 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.
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SEC. 8. Franchising Of Motoraycles-For-Hire.  - The  finnchising of motorcycles-£or-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  tens  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:
Provz.dad,  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 throuch the LGU  under
which jurisdiction the motorcycle-for-hire intends to operate: Prove.ded, That a motorcycle-for-hire
may only operate within the territorial jurisdiction of the LGU concened: Provided/i7ttier, 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.
SIEC. 9.  Requirements for  the  Grant  Of a  Franchise  or  Issuance  Of a  Certificate  Of Public
Co#ve#j.e"ce /CPC/. - A CPC shall only be issued to an operator upon submission or 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  pemit  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;
e)     Insurance coverage for any death or injury that may occur to a rider, passenger or any third
party or danage to property by reason or on occasion of its operation; and
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a     Tax Identification Number or certificate of Registration as common carrier issued by the
Bureau of Internal Revenue (BIR), if applicable.
SEC.10.  gwcz/I/?ccrfz.our  a/ h4:ofo7ic}Jc/e-For-Hz.re  RI.ders.  -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): I+ovz.ded,  That licensed riders shall attend at least one
(1) safety training seminar every year.
SE:C.11. Accreditation  Requirements Of TNCs and OEPPs. -A TNC or OEPP "NIst be duly
registered with the Securities and Exchange Commission (SEC).
Before a TNC or OEPP 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 OEPPs using motorcycles-for-hire.
The TNCs and OEPPs must possess and maintain the following minimum requirements for its
accreditation:
a)     ProofofFilipino citizenship;
b)     Proofoffinancial capacity;
c)     SEc registration;
d)     BIR Tax Identification Number;
e)     An Accident Quick Response system;
I)     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.
SHC. 12. Qpert]fro# a/"a/arc);c/c-For-fJj.re. - Motorcycles-for-hire may be allowed to operate
using digital booking platforms or designated teminals. To 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: Piioi/ided, 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 platfom.
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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  deterniined  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  Seffl.#g.  -  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 avallable 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.
SIC.  14.  ProcessJ.ng a/ Perso#¢/ Jjc/omafz.o#.  - 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."
SE:C.1S. Liabilities for Death, Ilyuries or Damage to Property. -The o:perzrtor zrnd the TNC or
OEPP  providing  the  digital  platform  at  the  time  when  the  death,  injury  or  damage  to  property
occured in the course of operating a motorcycle-for-hire shall be jointly and solidarily liable, with
rights of subrogation against any party at fault: Provl.did, That the liability of the TNC or OEPP shall
not exceed the amount of the insurance coverage of the operator.
SEC. 16.14ccz-deHf 9#}.c* jiexpouse. -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-
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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 platfoms. 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. E#/orcerme#f. - 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 canying  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 sanctious under this
Act.  It shall publish quarterly and anmal  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   (MM)A),   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
intemal rules made known to the latter, acts detrimental to safety and security and other reasonable or
valid grounds.
SEC. 18. Pe7za/fz.es. -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 penalties under existing laws and regulations, suffer
a penalty of suspension or revocation of franchise, after due notice and hearing.
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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.  rrtzve/ Dc7Ha#d  ¢#d  OperafroH¢/ Dala.  -  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. rrtz7isz./ory ProVI.s'z.o". - 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 See. 21 of this Act, whichever comes later.
SE:C. 21. Implementing Rules and Regulations. -V`rThin ninety (90` days from tire e££ectivity
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. Sep¢7i¢bi./I.fy C/awsc. - 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. Jzepea/I.#g C/a#s'e. - 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. Ejorec#.vz.fy. -This Act shall take effect fifteen (15) days after its publication in the
O#cz.crJ GczzefJ€ or in a newspaper of general circulation.
Approved.
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