A serious look at motorcycle ride-hailing

The story goes that in 2016, a Singaporean working in the Grab Philippines office got fed up with Metro Manila’s traffic jams and thus decided to launch Angkas, a motorcycle hailing service that offered a more efficient transportation alternative to the metropolis’ public utility vehicles.

Being a new concept, like Grab’s ride-sharing offer, the Land Transportation Franchising and Regulatory Board (LTFRB) challenged the legality of the Angkas operations, and in November 2017, barred Angkas’ ride-sharing services.

Angkas, through its operator, DBDOYC Inc., questioned the LTFRB decision before the Mandaluyong Regional Trial Court, and by September 2018, was able to resume its ride-hailing operations with the court’s ruling that barred LTFRB from arresting Angkas drivers.

Two months later, though, the Supreme Court issued a temporary restraining order on the Regional Trial Court’s ruling. Then in May 2019, the Department of Transportation (DOTr) allowed Angkas to operate on a provisional basis for six months from June to Dec. 26, 2019 purportedly to gather data that would be used by lawmakers to revisit the 1964 Land Transportation and Traffic Code.

Just days before the provisional permit ran out, the DOTr extended Angkas’ pilot run – including two other services, JoyRide and Move It – for three months to end March 23. This time, the DOTr warned there would be no further extension to the permits.

‘Provisional’ uncertainties

I would like to raise a number of concerns on the above narration, albeit shortened and without the emotional undertones that come from the anxiety spawned by the “provisional” uncertainties and legal tussles of our complex justice system.

When the DOTr, through its technical working group (TWG), issued a provisional permit for Angkas to operate last year, it should have allowed for a limited number of riders only from which its recommendation for a future course of action would be based.

If Angkas had failed to prove its road-worthiness, an exit plan should have been in place that would compensate the drivers involved in the pilot run. On the other hand, had the experiment yielded positive results, guidelines for an extended run should have been in place until legal issues are resolved.

Instead, the government allowed Angkas to grow to 27,000 riders, many of who bought motorbikes on installment that would have had to be paid through income derived from future ride-hailing operations. Then, the government had to wait at the last minute to extend the provisional permit issued to Angkas.

A three-month extension with a warning that this would be the last is certainly the best way to show just how seriously myopic our bureaucrats can be. Just what would the three months serve? Unless, of course, the TWG is thinking of granting permanent permits to Angkas and the two other ride-hailing companies singled out for inclusion in the extended pilot run.

Traffic-weary commuters of Metro Manila have already enthusiastically embraced the entry of motorcycle taxis, primarily of Angkas, after it was able to demonstrate a safety record of 99.997 percent during its six-month trial run.

Over the years, Angkas has gained the support of hundreds of thousands of urbanites as a safe, efficient, and cost-effective alternative to jeepneys, buses, trains, taxis, and even the upscale ride-sharing cars. Yanking out this new-found lifeline would definitely yield to an undesirable backlash.

Legal and legislative impediments

If the DOTr-led task force is thinking of issuing permanent permits to Angkas, JoyRide and Move It within the next three months, then it should think again – unless, of course, what would be issued are “permanent provisional” permits that will hold until legal and legislative impediments are resolved.

Experience tells us that resolving differences of opinions through the justice system will take more than three months, and this is involving just one judge. If this is elevated all the way up to the Supreme Court, a case could take years to be resolved.

Then, there is such a thing as local government rules. The Bonifacio Global City, for example, does not allow motorcycle taxis to operate within its territory despite the growing monstrosity of its traffic situation and continued increase in the number of workers and offices.

Finally, there is the half-century-old land transportation code that carries numerous outdated provisions and generally requires a total overhaul in keeping with new technologies as well as internationally accepted safety rulings.

Revisiting this would need a couple or more years, even in a Congress that is dominated by the President’s political supporters. The current law, Republic Act 4136, has been supplemented by a number of amendments, but the use of two-wheeled vehicles on roads has been allowed only by an executive order.

Remedial measures

Congress is currently consolidating a number of remedial bills that would define the existence and conduct of motorcycle ride-hailing vehicles, with a promise to expedite a new law before the three-month extension permit lapses.

Concerned lawmakers from both chambers of Congress have expressed various views urging the LTFRB to reconsider a recent move to bring down the number of Angkas riders to 10,000, apparently to enable JoyRide and Move It to fill in the void.

Lawmakers, as well as private sector members of the TWG, have pointed out that the new ride-hailing companies have not gone through the same rigorous process that Angkas has undergone.

Safety will be a major concern, especially since driver training requires time and resources. Abruptly cutting down the numbers of Angkas riders who have gone through rigorous training may only expose the public to unnecessary danger.

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