|g|l Senate
/t©fficp of tljc ^-C(
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
rrtnro
■22 JUL 18 P5:00
SENATE 
s. B. NO.
RECEIVED B','.
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 transport sector. One 
of these 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, Joyride, TokTokgo, OWTO, and ePickMeUp.2 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.3
According to a Social Weather Stations (SWS) survey conducted in 2020, 42% 
of Filipinos not doing home-based work said that going to work is more difficult today
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, accessible at 
https://wv\A/v.brookinqs.edu/wp-content/uDloads/2017/01/ridesharinq-oup-1117-v6-brookinqs1.pdf (last accessed- 
July 1.2019)
2 Philippine Ne\A/s Agency, Transport competition: Get to know more other TNVS players, May 2, 2022, accessible 
af https://www.pna.qov.ph/articles/1173495 (last accessed July 16, 2022).
3 “Study shows TNVS remain popular among Metro Manila commuters." June 3, 2018, accessible at 
https://businessmirror.com.Dh/20l8/06/03/studv-shows-tnvs-remain-Dopular-amonq-metro-manila-commuter5/
(last accessed July 1,2019)


than before.4 While the SWS noted a caveat that the survey was conducted at the 
height of the pandemic when public transportation was stHI limited, the same remains 
to be true.5 Based on data from the University of the Philippines’ School of Urban and 
Regional Planning, millions of Filipinos rely on public transportation to get to their 
respective destinations -jeepney (8,959,000) and bus (1,865,000).
Thus, to provide an alternative mode of public transportation and in view of the 
rising popularity of TNVS, the legal framework on Transport Network Companies 
(TNCs) and TNVS operations needs to be established.
This bill seeks to address this gap by clarifying the responsibilities of =TNC, 
their liability, and the licenses required of them. Under this bill, a TNC must obtain a 
permit from the Land Transportation Franchising and Regulatory Board in order to 
operate. In turn, the TNC must accredit Transport Network Drivers (TNDs) after 
determining their fitness to act as such. This bill also clarifies that the Transport 
Network Vehicles (TNVs) do not need to obtain any other permit other than the 
vehicles’ registration with the Land Transportation Office (LTO).
This bill also makes the TNC liable for injuries or death to passengers aboard 
a TNV for the company’s failure to exercise extraordinary diligence in the selection 
and supervision (as required under this bill) of TNDs. TNCs 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 Flundred Thousand 
Pesos (Php200,000.00) per passenger.
Thus, the passage of this bill is earnestly sought.
SENATOR J
L VILL
NUEVA
4 Inquirer, SWS: Commuters say going to work much harder now compared to pre-pandemic, accessible at
https.//newsinfo. inquirer.net/1428748/sws-commuters-sav-qoinq-to-work-much-harder-now-compared-to-pre-
pandemic {last accessed July 16, 2022).
5 Inquirer, As PH transport crisis worsens, workers say traffic, lack of rides are draining them, June 27, 2022, 
accessible at https://newsinfo.inquirer.net/1617567/as-ph-transport-crisis-worsens-workers-sav-traffic-lack-of-
rides-are-draininq-them {last accessed July 16, 2022).


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE 
S.B. No. 739
tesl Senate
of t[)C S-l'crftai’p
•22 JUL18 P5:00
RECEIVED BV;
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.
Transportation Act.”
This Act shall be known as the “Alternative Modes of
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 controlled by a transport network company. A pre-arranged 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) Transport Network Company (TNC) refers to a duly registered sole 
proprietorship, partnership, or corporation organized under the laws of the 
Philippines that provides pre-arranged transportation services for 
compensation by connecting transport network drivers with transport network 
riders using Internet-based technology application or digital platform 
technology, including accrediting transport network drivers in accordance with 
the provisions of this Act.
c) Transport Network Driver (TND) 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


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(c) uses a rideshare network vehicle to offer or provide a pre-arranged ride for 
compensation upon connection through a digital network.
d) Transport Network Passenger (TNP) 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.
e) Transport Network Vehicle (TNV) 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 Transport 
Network Company to be used for providing prearranged rides.
SEC. 4. Permit — A person shall not operate a TNC without first having obtained 
a certificate of accreditation from the Land Transportation Franchising and Regulatory 
Board (LTFRB) pursuant to this Act. The accreditation shall be valid for two (2) years, 
unless sooner revoked for reasonable cause and after notice and hearing; Provided, That 
any entity performing the functions of a TNC 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-TNC that 
meets the following requirements:
a) Has established a process, consistent with Section 5 of this Act, to enable 
individuals to become TNDs;
b) Requires criminal history checks and driving history for individuals seeking to 
become TNDs and complies with all other requirements set by the LTFRB in 
determining the fitness of TNDs;
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 TNC as provided in 
this Act and its implementing rules and regulations;
e) Pay an accreditation fee of a least Thirty Thousand Pesos (Php30,000.00), 
which must be paid annually: Provided, That such amount may be adjusted 
upon prior consultation with relevant stakeholders.
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 TNC is 
necessary therein.
SEC. 5. Transport Network Driver Requirements. — Before allowing an individual 
to act as a TND, the TNC 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 TND; Provided, That 
a TNC shall only permit an individual to act as such if the individual:


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a) Has not been convicted of any felony punishable with imprisonment of not less 
than two (2) years, within the past seven (7) years, as shown by a criminal 
history report or clearance or other similar document issued by the National 
Bureau of Investigation (NBI);
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 TNV is covered by a third-party liability insurance to 
cover for passenger injuries in the amount of at least One Hundred Thousand 
Pesos (Php100,000.00); and
e) Is at least eighteen (18) years of age.
Provided, further, That in determining the fitness of the applicant-TND, the TNG 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-TND 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-TND.
Provided finally. That the TNG shall have the continuing obligation to supervise and 
assess the performance of all accredited TND, and, if necessary, suspend or revoke the 
accreditation of a TND.
For the avoidance of doubt, no further registration shall be required of TNVs, aside from 
the motor vehicle registration with the Land Transportation Office (LTO).
SEC. 6. Identification of TNDs and TNVs. - A TNG shall ensure that a recent 
photo of the TND and the license plate of the TNV is displayed to the TNP before the rider 
enters or boards the vehicle.
SEC. 7. insurance Requirement - The TNG 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.C0) per passenger.
SEC. 8. Liabilities. -
a) In case of accident, injury, or death of the passenger while aboard the TNV, the 
TNG shall be civilly liable for failure to exercise extraordinary diligence and 
reasonable care in the accreditation and supervision of TNDs, except if such 
act is due to acts or omissions outside of the control of the TNG. For the


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avoidance of doubt, the liability herein provided is separate and distinct from 
the civil liability of the TNC imposed in other laws.
In addition, the TNC 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.
b) A TND is presumed to be negligent when there is breach in the contract of 
carriage. In case of such breach, the TNC and the owner/operator of the TNV 
shall be jointly and solidarily liable with the TND.
SEC. 9. Operational Requirements. —
a) The TNC shall ensure that the fare or fare calculation method is disclosed to 
the TNP 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.
b) A TND may travel on any route selected by the TNP, including those with 
predetermined drop-off and pick-up points, or on a route selected by the TND; 
Provided, That the LTFRB may, when necessary to control traffic and the 
number of vehicles-for-hire plying the area, limit the number of TNVs 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 TNC, 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 TNVs therein, and their impact on the 
traffic situation in the area, to determine the reasonableness of the total number of TNVs 
therein, with due regard to the demand fot the continuous operation of such motor vehicles.
SEC. 11. Electric Invoices. -
a) Following the completion of a pre-arranged ride, the TNC and the TND shall 
ensure that an electronic invoice is transmitted to the TNP, 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 name of the TND; and
4) An itemization of the total fare paid, if any.


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b) Notwithstanding subsection (a) above, nothing herein shall prevent the TND to 
directly provide a receipt to a TNP, or to designate the TNC 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 TNC and the TND 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.
SEC. 13. Audit Procedures; Confidentiality of Records. —
a) For the sole purpose of verifying that a TNC is in compliance with the 
requirements of this Act, the LTFRB shall have the authority to annually inspect 
the records of the TNC; 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 unless one (1) or more of the conditions 
for lawful processing of personal and/or sensitive information under the Data 
Privacy Act is present.
SEC. 14. Limitations on TNC. -
a) A TNC shall not be deemed to:
1) Control, direct or manage the TNDs or TNVs, except as expressly provided 
In this Act, as agreed by the parties in writing, or the conduct of the parties 
evinces control over the performance of duties of the TNDs; or
2) Operate a common carrier.
b) TNDs shall not be deemed employees of TNCs unless otherwise agreed upon 
in writing by the parties or the conduct of the parties satisfies the test for 
determining the presence of an employer-employee relationship; Provided 
That:
1) The TNC shall not impose limitations on the number of hours that, and 
when, a TND must be logged on to the digital network;
2) The TNC shall not impose areas of assignments to a TND; and
3) There are no restrictions on the ability of the TNDs to enqaqe with other 
TNCs.
SEC. 15. Enforcement -


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a) A TNG that has violated any provisions of this Act shall be liable, after notice 
and hearing, for an administrative fine of up to Five Hundred Thousand Pesos 
(Php500,000.00), or suspension or revocation of its accreditation as a TNG, 
upon a determination by the LTFRB that it has committed repeated violations 
of any provisions of this Act and that the same endangers the public.
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 TNDs.
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 
appropriate government agencies and 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,