1
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO ‘BRO. EDDIE’ C. 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 
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://www.brookinqs.edu/wp-content/uDloads/2017/01/ridesharinq-oup-1117-v6-brookinqs1.pdf (last accessed: 
July 1. 2019)  
2 Philippine News Agency, Transport competition: Get to know more other TNVS players, May 2, 2022, accessible 
at https://www.pna.gov.ph/articles/1173495 (last accessed July 16, 2022). 
November 7, 2022
8:05 am
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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 than before.4 While the SWS noted a caveat that 
the survey was conducted at the height of the pandemic when public 
transportation was still 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 Hundred Thousand Pesos 
(Php200,000.00) per passenger. 
3  “Study shows TNVS remain popular among Metro Manila commuters." June 3, 2018, accessible at 
https://businessmirror.com.Dh/2OI8/O6/O3/studv-shows-tnvs-remain-Dopular-amonq-metro-manila-commuter5/ 
(last accessed July 1, 2019) 
4 Inquirer, SWS: Commuters say going to work much harder now compared to pre-pandemic, accessible at 
https://newsinfo.inquirer.net/1428748/sws-commuters-say-going-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-say-traffic-lack-of-
rides-are-draining-them (last accessed July 16, 2022). 


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Thus, the passage of this bill is earnestly sought. 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 


4
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO ‘BRO. EDDIE’ C. VILLANUEVA 
AN ACT  
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 
1 
Philippines in Congress assembled: 
2 
3 
SECTION 1. Short Title. – This Act shall be known as the 
4 
“Alternative Modes of Transportation Act.” 
5 
6 
SEC. 2. Declaration of Policy. – It is hereby declared the policy of 
7 
the State to engage in dynamic technological innovations and allow the 
8 
provision of affordable transportation options, while guaranteeing the 
9 
safety and well-being of the riding public.  
10 
11 
SEC. 3. Definitions. – As used in this Act, the following terms shall 
12 
mean: 
13 
14 
a) Pre-arranged ride refers to the provision of transportation by a
15 
rideshare network driver to a rideshare network rider beginning
16 
when a rideshare network driver accepts a request made by a
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rideshare network rider by means of a digital network controlled
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by a transport network company. A pre-arranged ride does not
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include a shared expense carpool or vanpool arrangement or any
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other type of arrangement or service in which the driver receives
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a fee that does not exceed the driver’s costs associated with 
1 
providing the ride.  
2 
 
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b) Transport Network Company (TNC) refers to a duly registered 
4 
sole proprietorship, partnership, or corporation organized under 
5 
the laws of the Philippines that provides pre-arranged 
6 
transportation services for compensation by connecting transport 
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network drivers with transport network riders using Internet-
8 
based technology application or digital platform technology, 
9 
including accrediting transport network drivers in accordance 
10 
with the provisions of this Act.  
11 
 
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c) Transport Network Driver (TND) refers to an individual who (a) 
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satisfies the requirements provided in Section 5 of this Act, (b) 
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receives requests for prearranged rides from potential 
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passengers by means of a digital network, and (c) uses a 
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rideshare network vehicle to offer or provide a pre-arranged ride 
17 
for compensation upon connection through a digital network. 
18 
 
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d) Transport Network Passenger (TNP) refers to an individual 
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who has obtained an account to use a digital network, or another 
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individual designated by the account holder, to receive a 
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prearranged ride. 
23 
 
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e) Transport Network Vehicle (TNV) refers to a vehicle seating 
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less than fifteen (15) passengers, including, but not limited to, 
26 
any passenger automobile, truck, motorcycle, or similar vehicle, 
27 
that is owned, leased, rented, or authorized for use by a rideshare 
28 
network driver and that has been approved by a Transport 
29 
Network Company to be used for providing prearranged rides. 
30 
 
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SEC. 4. Permit. – A person shall not operate a TNC without first 
32 
having obtained a certificate of accreditation from the Land Transportation 
33 
Franchising and Regulatory Board (LTFRB) pursuant to this Act. The 
34 
accreditation shall be valid for two (2) years, unless sooner revoked for 
35 
reasonable cause and after notice and hearing; Provided, That any entity 
36 
performing the functions of a TNC operating in the Philippines before the 
37 
effective date of this Act may continue operating pending the issuance of 
38 
the permit required under this Act; Provided, however, That the entity shall 
39 
immediately cease operation upon denial of its application.  
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The permit required under this Section shall be issued to an 
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applicant-TNC that meets the following requirements: 
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a) Has established a process, consistent with Section 5 of this Act, 
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to enable individuals to become TNDs; 
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b) Requires criminal history checks and driving history for 
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individuals seeking to become TNDs and complies with all other 
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requirements set by the LTFRB in determining the fitness of 
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TNDs; 
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c) Provides proof of its compliance with the insurance requirements 
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set forth in Section 7 of this Act; 
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d) Provides an undertaking to comply with all obligations of a TNC 
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as provided in this Act and its implementing rules and regulations; 
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e) Pay an accreditation fee of a least Thirty Thousand Pesos 
18 
(Php30,000.00), which must be paid annually: Provided, That 
19 
such amount may be adjusted upon prior consultation with 
20 
relevant stakeholders.  
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The permit issued under this Section shall be limited to a 
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geographical area as may be prescribed by the LTFRB upon a 
24 
determination that the services provided by a TNC is necessary therein. 
25 
 
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SEC. 5. Transport Network Driver Requirements. – Before 
27 
allowing an individual to act as a TND, the TNC shall require the individual 
28 
to provide relevant information, including, but not limited, to the driver’s 
29 
address, age, license number, motor vehicle registration, automobile 
30 
liability insurance, and such other information as may be deemed 
31 
necessary in order to determine the applicant’s fitness to become a TND; 
32 
Provided, That a TNC shall only permit an individual to act as such if the 
33 
individual: 
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a) Has not been convicted of any felony punishable with 
36 
imprisonment of not less than two (2) years, within the past seven 
37 
(7) years, as shown by a criminal history report or clearance or 
38 
other similar document issued by the National Bureau of 
39 
Investigation (NBI); 
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b) Possesses a valid professional driver’s license, and who has not 
1 
committed more than five (5) violations of traffic and other related 
2 
laws and regulations within the last two (2) years; 
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c) Provides proof of valid registration for the motor vehicle(s) to be 
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used in providing pre-arranged rides; 
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d) Provides proof that the TNV is covered by a third-party liability 
8 
insurance to cover for passenger injuries in the amount of at least 
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One Hundred Thousand Pesos (Php100,000.00); and  
10 
 
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e) Is at least eighteen (18) years of age. 
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Provided, further, That in determining the fitness of the applicant-TND, the 
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TNC may: 
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a) Conduct, by itself or with the assistance of a third party, a criminal 
17 
background check for each individual;  
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b) Request the LTFRB to determine the fitness of the applicant-TND 
20 
pursuant to the rules and regulations set by the LTFRB; or 
21 
 
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c) Require the submission of other requirements as it may deem 
23 
necessary and expedient to ensure the fitness of the applicant-
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TND. 
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Provided finally, That the TNC shall have the continuing obligation to 
27 
supervise and assess the performance of all accredited TND, and, if 
28 
necessary, suspend or revoke the accreditation of a TND. 
29 
 
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For the avoidance of doubt, no further registration shall be required of 
31 
TNVs, aside from the motor vehicle registration with the Land 
32 
Transportation Office (LTO). 
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SEC. 6. Identification of TNDs and TNVs. – A TNC shall ensure 
35 
that a recent photo of the TND and the license plate of the TNV is 
36 
displayed to the TNP before the rider enters or boards the vehicle. 
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SEC. 7. Insurance Requirement. – The TNC shall be required to 
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procure a personal accident insurance to cover for passenger injuries 
40 
arising from motor vehicle accidents during a pre-arranged ride in an 
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amount of at least Two Hundred Thousand Pesos (Php200,000.00) per 
1 
passenger. 
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SEC. 8. Liabilities. –  
4 
 
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a) In case of accident, injury, or death of the passenger while 
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aboard the TNV, the TNC shall be civilly liable for failure to 
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exercise extraordinary diligence and reasonable care in the 
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accreditation and supervision of TNDs, except if such act is due 
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to acts or omissions outside of the control of the TNC. For the 
10 
avoidance of doubt, the liability herein provided is separate and 
11 
distinct from the civil liability of the TNC imposed in other laws. 
12 
 
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In addition, the TNC shall be liable for an administrative fine of 
14 
up to One Million Pesos (Php1,000,000.00), depending on the 
15 
severity of the violation, the number of passengers affected, and 
16 
other factors as may be determined by the LTFRB in appropriate 
17 
rules and regulations. 
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b) A TND is presumed to be negligent when there is breach in the 
20 
contract of carriage. In case of such breach, the TNC and the 
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owner/operator of the TNV shall be jointly and solidarily liable 
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with the TND. 
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SEC. 9. Operational Requirements. –  
25 
 
 
26 
a) The TNC shall ensure that the fare or fare calculation method is 
27 
disclosed to the TNP at all times, guided by the following 
28 
principles: 
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1) There are no maximum fares or rates; 
31 
 
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2) A minimum or flat fare or rate may be charged; 
33 
 
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3) The fares or rates may be based on time and distance; 
35 
 
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4) Fares or rates may adjust dynamically from trip to trip. 
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b) A TND may travel on any route selected by the TNP, including 
39 
those with predetermined drop-off and pick-up points, or on a 
40 
route selected by the TND; Provided, That the LTFRB may, when 
41 
necessary to control traffic and the number of vehicles-for-hire 
42 
plying the area, limit the number of TNVs operating in an area. 
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SEC. 10. Cap or Limit on Volume of Vehicles. – There shall be 
2 
no immediate cap or limit on the number of vehicles that may operate 
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under a TNC, Provided, That the Land Transportation Office (LTO), 
4 
LTFRB, the metropolitan development councils and other pertinent 
5 
government agencies shall conduct an annual study on the total volume 
6 
of vehicles plying in an area, the total number of TNVs therein, and their 
7 
impact on the traffic situation in the area, to determine the reasonableness 
8 
of the total number of TNVs  therein, with due regard to the demand for 
9 
the continuous operation of such motor vehicles. 
10 
 
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SEC. 11. Electric Invoices. –  
12 
 
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a) Following the completion of a pre-arranged ride, the TNC and the 
14 
TND shall ensure that an electronic invoice is transmitted to the 
15 
TNP, which shall include, but not be limited, to: 
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1) The origin and destination of the trip; 
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2) The total time and distance of the trip; 
20 
 
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3) The name of the TND; and 
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4) An itemization of the total fare paid, if any. 
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b) Notwithstanding subsection (a) above, nothing herein shall 
26 
prevent the TND to directly provide a receipt to a TNP, or to 
27 
designate the TNC to provide such receipt to the rider. 
28 
 
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c) The Bureau of Internal Revenue (BIR) shall establish 
30 
mechanisms to ensure that the receipts issued under this Section 
31 
are compliant with the applicable provisions of the Tax Code on 
32 
the proper form and issuance of receipts. 
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SEC. 12. Records. – A TNC and the TND shall keep in its records 
35 
the individual trip records and the receipts issued therefor for at least five 
36 
(5) years from the date each trip happened.  
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SEC. 13. Audit Procedures; Confidentiality of Records. – 
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a) For the sole purpose of verifying that a TNC is in compliance with 
41 
the requirements of this Act, the LTFRB shall have the authority 
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to annually inspect the records of the TNC; Provided, That the 
1 
audit shall take place at a mutually agreed location; Provided, 
2 
further, That such inspection shall be done with due regard to the 
3 
provisions of the Data Privacy Act of 2012; Provided, 
4 
furthermore, That nothing herein shall prevent the LTFRB, motu 
5 
proprio or upon complaint, from inspecting the records of a 
6 
rideshare support company, with due regard to the provisions of 
7 
the Data Privacy Act, unless the disclosure of personal 
8 
information is necessary for the resolution of the complaint. 
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b) Any records furnished to the LTFRB under this Act shall be 
11 
confidential and shall not be disclosed to any third party unless 
12 
one (1) or more of the conditions for lawful processing of personal 
13 
and/or sensitive information under the Data Privacy Act is 
14 
present. 
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SEC. 14. Limitations on TNC. –  
17 
 
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a) A TNC shall not be deemed to: 
19 
 
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1) Control, direct or manage the TNDs or TNVs, except as 
21 
expressly provided in this Act, as agreed by the parties in 
22 
writing, or the conduct of the parties evinces control over the 
23 
performance of duties of the TNDs; or 
24 
 
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2) Operate a common carrier. 
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b) TNDs shall not be deemed employees of TNCs unless otherwise 
28 
agreed upon in writing by the parties or the conduct of the parties 
29 
satisfies the test for determining the presence of an employer-
30 
employee relationship; Provided, That: 
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1) The TNC shall not impose limitations on the number of hours 
33 
that, and when, a TND must be logged on to the digital 
34 
network;  
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2) The TNC shall not impose areas of assignments to a TND; 
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and  
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3) There are no restrictions on the ability of the TNDs to engage 
40 
with other TNCs. 
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SEC. 15. Enforcement. – 
2 
 
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a) A TNC that has violated any provisions of this Act shall be liable, 
4 
after notice and hearing, for an administrative fine of up to Five 
5 
Hundred Thousand Pesos (Php500,000.00), or suspension or 
6 
revocation of its accreditation as a TNC, upon a determination by 
7 
the LTFRB that it has committed repeated violations of any 
8 
provisions of this Act and that the same endangers the public. 
9 
 
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b) In the determination of fines to be imposed under this Section, 
11 
the LTFRB shall take into consideration the following: 
12 
 
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1) The severity of the violation; 
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2) Good faith effort to remedy the violation; and 
16 
 
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3) History of previous violations. 
18 
 
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c) The LTFRB shall resolve to expeditiously process all applications 
20 
to ensure the continuous and immediate availability of qualified 
21 
TNDs. 
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SEC. 16. Controlling Authority. – The LTFRB shall be the lead 
24 
implementing agency in carrying out the provisions of this Act. 
25 
 
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SEC. 17. Implementing Rules and Regulations. – The LTFRB, in 
27 
consultation appropriate government agencies and with relevant 
28 
stakeholders, shall issue the rules and regulations necessary to 
29 
implement the provisions of this Act within ninety (90) days from its 
30 
effectivity. For the avoidance of doubt, the implementing rules and 
31 
regulations issued for this purpose shall not impose additional 
32 
accreditation or permit requirements other than those provided under this 
33 
Act. 
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SEC. 18. Separability Clause. – If any section or part of this Act is 
36 
held unconstitutional or invalid, the remaining section not otherwise 
37 
affected shall remain valid. 
38 
 
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SEC. 19. Repealing Clause. – All provisions of existing laws, 
40 
presidential decrees or issuances, executive orders, letters of instruction, 
41 
administrative orders, rules and regulations contrary to or inconsistent 
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with the provisions of this Act are hereby repealed, amended, or modified 
1 
accordingly. 
2 
 
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SEC. 20. Effectivity. – This Act shall take effect fifteen (15) days 
4 
after its complete publication in the Official Gazette and in at least two (2) 
5 
newspapers of general circulation. 
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Approved, 
8