Habal-Habal, Xpress Motorcyle Taxi & House Bill 10424

It was observed that public commuting in the Philippines is so bad that that it has been described as dehumanizing. The daily struggle of the Filipino commuter consists mainly of hours of waiting for a ride and getting stuck in traffic snarls that reflect a serious transport supply shortage, exacerbated by an inefficient and unintegrated public transport network.

READ: Commuters deserve better

While there has been an improvement since the days where we would witness snaking long lines at MRT and LRT stations, commuting in Metro Manila is still quite challenging. People waiting for public transport and hailing rides, whether via motorcycles or cars, face long waits. When finally able to get a ride, commuters then have to face the traffic gridlock.

There was a study made and the result of which found that Metro Manila has the worst traffic congestion among metro areas in the world. According to the 2023 TomTom Traffic Index, out of 387 cities across 55 countries, Metro Manila registered the longest average travel time to traverse a ten (10)- kilometer route (e.g., Cubao to Makati) at 25 minutes and 30 seconds. This is higher compared to the 24 minutes and 40 seconds average travel time in 2022. The other metro areas which topped in traffic congestion are Lima (Peru), Bengaluru (India), Sapporo (Japan), and Bogota (Colombia).

The practice of motorcycles for hire is traditionally known as Habal-Habal. Historically, it is said that Habal-Habal started in the Mindanao area to service workers of small mining industries and traders enabling them to move to and from the locality where there was no 4 or 3 wheel mode of transportation. Habal-Habal then spread to the Visayas then to Luzon and Metro Manila.

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In cities, travelling via motorcycles was more affordable as owning a motorcycle was cheaper than buying a car. It was also seen as a quick way of navigating the clogged and narrow streets of urbanized areas.

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It is said that there are 10 million motorcycles in the Philippines. This is a huge number for a population of about 110 million Filipinos. Since no administration has so far been able to provide a lasting solution to the traffic congestion in the Philippines, it appears that motorcycle ownership is only set to increase

In 2019, the government allowed a Pilot Program allowing motorcycle taxis to serve Filipino commuters which was to be regulated by a Technical Working Group (TWG) led by the LTFRB. The program allowed Angkas and Joyride, and later MoveIt, to operate MC Taxis. Last year, the TWG accredited several other MC Taxi firms such as Para Express (Xpress), Taxi Philippines, Grab and Dingdong to operate MC Taxis.

Among the new players is Xpress which is part of the Cebuana Lhuillier Group of Companies with its Xpress App for ride hailing and sharing.

READ: Green Light for Xpress: LTFRB approves Moto Taxi and 4W Services

The Xpress App has a focus on passenger security which includes an option for users to add emergency contacts, ensuring loved ones are informed in case of any emergencies. Additionally, every journey is safeguarded by Chubb Insurance, providing peace of mind for both drivers and passengers.

It has also entered into a strategic partnership with the Cebuana Lhuillier’s Kanegosyo Center, partner drivers have the unique opportunity to enhance their skills and knowledge through free access to valuable educational and financial literacy resources.

Last July, Xpress held a media launch in Makati where it presented the Company’s vision, its Xpress app and specialized features, and LGU partnerships.

It is hoped that the entry of new players after about half a decade of having only 3 players in the MC Taxi field, will spur innovation, better service and competitive rates, which all benefit the riding public.

Notably, there is no law regulating the MC Taxi program, which is why the TWG and the MC Taxi Pilot Program was created back in 2019.

However, change seems to be on the horizon as there have been persistent calls by Congress to end the MC Taxi Pilot Program. There is House Bill 10424, the Motorcycles-for-Hire Act, (HB 10424), which was recently passed on 3rd and final reading by the House of Representatives.

READ: Bill seeking to regulate motorcycle taxi ops gets House’s nod

Some salient points of HB 10424 are as follows.

1. If passed into law, HB 10424 will be the law that will regulate the operation of motorcycle taxis;
2. The LTFRB to be the agency tasked to issue a franchise or certificate of public convenience to MC Taxis;
3. Operators of MC Taxis, which is the person in whose name the motorcycle-for-hire is registered, may operate under 2 digital platforms (multi-homing);
4. MC Taxi operators may not operate independent of digital platforms except in areas that are not serviced by MC Taxi digital platforms;
5. MC Taxi riders will have a maximum number of hours of operation set by the implementing rules;
6. MC Taxis shall have a speed limit of 60kph;
7. The Operator and digital platform provider shall be jointly and solidarily liable for death, injury or damage to property caused by the motorcycle for hire. MC Taxis must be covered by insurance for the driver, passengers, goods, and third parties;
8. Digital platform providers shall conduct continuing safety and training seminars for their riders except for areas where no digital platform providers operate where in such cases the LTO shall conduct the safety and training of the riders;
9. All digital service providers must establish a quick response team to provide immediate medical care for accidents and emergencies; and
10. Drivers of MC Taxis must possess a professional driver’s license.

Since it looks like MC Taxis are here to stay, let’s hope that the proper law, rules and regulations will finally be in place.

(The author, Atty. John Philip C. Siao, is a practicing lawyer and founding Partner of Tiongco Siao Bello & Associates Law Offices, an Arbitrator of the Construction Industry Arbitration Commission of the Philippines, and teaches law at the De La Salle University Tañada-Diokno School of Law. He may be contacted at [email protected]. The views expressed in this article belong to the author alone.)

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