The country’s competition regulator on Friday threw its support behind the passage of Senate bills legitimizing the operations of motorcycle taxis, arguing this expands the options of commuters and opens opportunities for innovators.
The Philippine Competition Commission (PCC) said it backs the legislation of Senate measures amending the Land Transportation and Traffic Code to legitimize two-wheeled motorcycle taxis as a mode of public transport. Such move, it added, will provide commuters additional option in the face of worsening traffic congestion in Metro Manila.
Further, the PCC said, the use of motorcycle for public transport is widely practiced in the rural areas, evidenced by the popularity of the so called habal-habal in some provinces.
“The Philippine Competition Commission expresses its support for the passage of Senate bills amending the Land Transportation and Traffic Code to allow two-wheeled MC vehicles as a mode of public transport,” the PCC said. “The Senate bills are timely, widen the choices for commuters and open opportunities for businesses and innovators.”
There are four bills filed before the Senate seeking the amendment of Republic Act 4136, or the Land Transportation and Traffic Code—that’s Senate Bill 128 of Sen. Grace Poe; SB 1025 of Sen. Juan Edgardo M. Angara; SB 409 of Sen. Imee Marcos; and SB 50 of Senate President Pro Tempore Ralph G. Recto.
The PCC also called on the technical working group (TWG) doing the pilot study on motorcycle taxis to consider the competitive effects of multihoming in its study. Implementing this policy, it said, will allow drivers to choose which platform they will offer their services in the same way passengers can select which ride-hailing app to use.
The PCC argued multihoming will keep firms on their feet, as they will need to continuously innovate to be able to keep their drivers and satisfy their patrons.
Prohibiting drivers from choosing which platform to serve could result in inefficiencies that will be detrimental to the riding public, the competition body explained. It added competition must be considered in the study on whether to legitimize motorcycle taxis.
“While we recognize that the pilot study is intended to be of limited duration and will end in March, any situation thereafter which allows or contemplates the continued operation of MC taxis and online ride-hailing should ensure fair, market-driven competition in the provision of MC taxi services,” the PCC said.
The PCC extended its readiness to lend advisory support to the TWG, the Land Transportation Franchising and Regulatory Board and the Department of Transportation in the formulation of policies regulating motorcycle taxis. It said the rise of motorcycle taxis is an opportunity for the government to come together to craft rules on this new business.
“The study is a preview of a new market on the rise and this is an opportunity for government agencies, with our respective mandates, to come together to craft policies in parallel or ahead of these developments,” the PCC said.
At present, there are three motorcycle taxi firms operating across the archipelago, but mostly in Metro Manila: Angkas, Move It Philippines and JoyRide. Antonio B. Gardiola Jr., head of the TWG, on Tuesday said the operations of motorcycle taxis will continue, backpedaling from an earlier statement that the pilot study will be terminated and, therefore, the use of two-wheeled vehicle for public transport will be illegal.
Image credits: CNN Philippines