QuestionsQuestions (Republic Act No. 7876)
LTO retains the power to register all types of motor vehicles including motorized tricycles under R.A. No. 4136; R.A. No. 7160 does not amend or supersede LTO’s registration authority.
The guidelines are issued pursuant to the Local Government Code (R.A. No. 7160), particularly Section 447(3)(vi) for municipalities and Section 458(3)(vi) for cities.
A tricycle-for-hire is a motor vehicle composed of a motorcycle fitted with a single-wheel side car or a motorcycle with a two-wheel cab, operated to render transport services to the general public for a fee.
MTOP stands for Motorized Tricycle Operator’s Permit. It is the document granting franchise/license to operate tricycle-for-hire over zones specified therein.
A zone is a contiguous land area or block (e.g., a subdivision or barangay) where tricycles-for-hire may operate without a fixed origin and destination.
The SB/Sangguniang Bayan or SP/Sangguniang Panlungsod may issue, amend, revise, renew, suspend, cancel MTOP; determine and fix fares after public hearing; prescribe/regulate zones in coordination with barangays; fix/impose/collect fees and charges; and establish conditions and qualifications of service.
Only Filipino citizens and partnerships or corporations with 60% Filipino equity are qualified to be operators of tricycles-for-hire.
No MTOP shall be granted unless the applicant possesses units with valid registration papers from the LTO.
The operator must carry a common carrier’s insurance sufficient to answer for liability to passengers and third parties in case of accidents.
The official initial fare is a minimum fee of P2.00 plus P0.50 per kilometer in excess of 4.0 km distance.
Fares should provide the operator a reasonable return/profit while still being affordable to the general public.
For safety, no tricycle should operate on national highways used by 4-wheel vehicles greater than 4 tons and where normal speed exceeds 40 KPH; SB/SP may provide exceptions if no other alternative route exists.
Existing zones within more than one municipality/city must be maintained, but operators must secure MTOPs from each municipality/city having jurisdiction over the areas covered by the zone.
A common color may be imposed for the zone; each unit must be assigned and bear an identification number aside from its LTO license plate number.
If an operator stops service or suspends for more than one month, it must report in writing such termination/suspension to the SB/SP that granted the MTOP; transfer to another zone may be permitted upon application.
MTOP is valid for three (3) years, renewable for the same period. Transfer to another zone, change of ownership of the unit, or transfer of MTOP are treated as amendments requiring appropriate SB/SP approval.
Operators must employ only drivers duly licensed by LTO for tricycles-for-hire.
No tricycle-for-hire should carry more passengers and/or goods than it is designed for.
A tricycle-for-hire may operate like a taxi service—service is rendered upon demand and without a fixed route within the zone.
The SB/SP may impose annual franchise fee (collected once a year), filing fees (upon application and for amendments based on number of units/requests), fare adjustment fee for fare increases (collected with the annual franchise fee), and other related charges. The guidelines state fees/charges in regulation cannot be adjusted more often than once every three (3) years.