While ride-hailing apps have benefitted Filipino commuters, especially in Metro Manila, further increasing transport network vehicle service (TNVS) supply and legalizing motorcycle taxis would help fill lingering transportation gaps, according to the Paris-based International Transport Forum (ITF).
In an Oct. 3 report titled "Regulating App-based Mobility: Case Studies from Bangkok, Manila and Phnom Penh," ITF noted that "the ubiquity of app-based passenger mobility services, especially in dense metropolitan areas like metropolitan Manila, reflects the demand for safe and convenient modes of urban transport."
ITF, a think tank of the Organization for Economic Cooperation and Development (OECD) grouping of wealthy nations, cited the popularity of apps and TNVS such as Grab, Angkas, JoyRide, Move It, TokTokgo, OWTO, ePickMeUp and even Uber in the past not only among commuters but also for transport of goods, including delivery of documents, food and groceries.
However, "current restrictions on the supply of TNVS vehicle licenses in metropolitan Manila and simultaneous controls on prices generate market inefficiencies which can negatively affect the welfare of firms, drivers, and passengers," ITF said.
For ITF, "to better enable supply to meet demand, restrictions on the number of TNVS vehicle licenses should be lifted, with the government instead focusing on addressing any induced traffic congestion or air pollution through holistic travel demand policies which target all road users and improve the attractiveness of high-capacity public transport services as well as active travel."
Moving forward, regulators may instead conduct regular inspections to assess vehicles' roadworthiness instead of the current seven-year age limitation covering four-wheel TNVS units, the think tank said.
On top of liberalizing TNVS supply, ITF enjoined legalizing app-based motorcycle taxi services. At present, two-wheel ride-hailing apps Angkas, JoyRide and Move It only have provisional authority to operate in Metro Manila and other urban areas, which capped permitted riders.
"Efforts to finalize and implement these regulations should be expedited given ongoing delays resulting in the proliferation of less safe, informal 'habal-habal' rides as demand for these services continues to grow," it said.
"Like four-wheeler TNVS, supply caps on the number of motorcycle taxis permitted to operate in metropolitan Manila should be removed to avoid market inefficiencies and maximize uptake of safety regulations. As is the case for TNVS, surge-pricing within clearly set bounds should also be permitted," it added.
Also, ITF recommended addressing licensing inefficiencies — in particular, enhancing cross-agency coordination on so-called super-apps like Grab, which provide both transport and non-transport services using a single app or online platform.
"The LTFRB [Land Transportation Franchising and Regulatory Board] and LTO [Land Transportation Office] should work together to review and streamline the application process by which four-wheeled app-based mobility providers obtain a license to operate public transportation services, and transition from an exclusively paper-based to digital application process," ITF said.
"Doing so could also benefit other public transport services, like buses and jeepneys, as well as app-based motorcycle taxi services (once legalized)," ITF added.
The think tank suggested coming up with an interagency task force that shall oversee and regulate super-apps whose "market power continues to increase."
Citing feedback from app-based mobility stakeholders in the country, ITF said there is "a lack of coordination between relevant government agencies with regards to regulating super-apps, resulting in a lack of oversight which may be detrimental to the public over time given the scale of market power involved."
Besides the LTFRB, the departments of Transportation (DOTr) and of Information and Communications Technology (DICT), the Bangko Sentral ng Pilipinas (BSP), the Philippine Competition Commission (PCC), and the Bureau of Labor Relations of the Department of Labor and Employment (DOLE), among others, should jointly govern super-apps through the proposed task force, according to ITF.
It likewise noted that the DICT's rules on app-based freight delivery services must be made consistent with the LTFRB's passenger services regulations so that "a regulatorily permissive environment is fostered to spur deployment and uptake of app-based services for active travel."