Implementation of New Fare Matrix for Public Tricycle and its effect to Drivers

and Commuters

Charles Eiron T. Recto

Patricia Rose A. Labao

Ralph Roger Montoya

Evan Angelo Lugo

S.Y. 2018–2019
 STATEMENT OF THE PROBLEM

From various emerging nations in Asia, the existence of motorcycles as a local

transportation of the public became known. With different countries hawing their own

version of using motorcycle as their local transportation such as the “tuktuk” of Thailand,

Philippines has its own style called “habal-habal” or motorcycle taxi. In the contemporary

age, tricycle or sometimes called as “trike” are the second most popular means of local

transportation of Filipinos right after the iconic jeepneys.

On a news report by CNN Philippines, the number of for hire tricycles and

motorcycles operating in the Philippines as of 2012 reached over 658,675 or nearly 67.9% of

the total for hire vehicle population. Even though Philippines is an archipelago, land

transportation is still the most dominant type of transportation with an accumulated share of

233.1 to gross domestic product (GDP) from the 1st to 3rd quarter of 2018, based on the

statistics from Philippines Statistics Authority.

To a simple individual who goes to work or school every day, public transportation

such as tricycles already became a part of their daily lives. For commuters who doesn't have

their own vehicle, tricycles are very useful as their mode of transportation, and to those who

have their own vehicles, using trike is more practical because they don’t need to spend too

much money for gasoline and sometimes, parking fees.

In Tumauini, tricycles are the most dominant type of public transportation.

Commonly used by High School students, people who go to their work, and sometimes

people buying their necessities in the public market.

Since the implementation of the government’s Tax Reform for Acceleration and

Inclusion (TRAIN) Law, the price of petroleum increased continuously. As a result of this
constant oil price hike, public transport groups seek for the approval of the Local

Government Unit (LGU) to increase the minimum fare of public transportations resulting to a

change on the fare matrix.

Based on the Municipal Ordinance No. 13- 2018 Section 3, taripa, or the tax to be

paid on a particular class of imports or exports won't be issued to any Tricycle

Drivers/Operators without securing first a necessary Mayor's permit and franchise to operate.

Due to the new fare increase for tricycles, commuters will remain disadvantaged as

their wages could not cope up with the price increase of basic commodities. On the other

hand, drivers can’t expect that their profit will increase because there’s a chance that

commuters will prefer to use their own vehicles or loan a motorcycle than paying too much

every day just for a tricycle ride.

Tumauini, being a rural community, the challenge of this newly implemented fare

matrix for tricycles would be a big battle for both drivers and commuters. Thus, the

researchers will conduct this study to determine the effect of the new fare matrix of public

vehicles to commuters and drivers.

 PRELIMINARY REVIEW OF RELATED LITERATURE

Foreign Literature

UberMoto is a pilot program launched by Uber Technologies to bring order to

Bangkok’s most common form of transport: the 90,000 plus motorcycle taxis that pool at the

end of every street in the Thai capital. UberMoto basically uses commercially licensed

motorbike drivers. Drivers pay 25% of the fares they collect using the Uber platform. Users

are charged a base fare of 10 baht ($0.28) plus 3.5 baht per km and 0.85 baht per minute

with payment by credit card or cash. Cheaper than the fares of GrabTaxi where commuters

should pay 20 baht as a base fare then an additional 10 baht for each kilometer from the first

one.

The plan to increase the rates of online-based motorcycle taxis in Jakarta may trigger

the demand for this kind of service by almost 70%, according to a study by the Institute for

Socio-Economic Development Research (Rised), based on interviews with 2,001

respondents from 10 provinces. The Indonesian government is drafting a plan to impose a

minimum rate of 3,100(22 US cents) per kilometer to meet demands by the Indonesia’s

more than 2 million online- based motorcycle taxi drivers. The study estimated that the

imposed minimum fare plan of the government would increase the amount the commuters

will spend on transportation per day. According to Zumrotin K. Susilo, aside from

convenience, commuters choose to use an online-based motorcycle ride- hailing services

because of its low fare.

Foreign Studies

From the study “Exploring Drivers of Agent’s Satisfaction: An Empirical Study of

Tricycle Drivers in Tanzania Transport Industry” of Ndibalema and Harun in 2017,

information exchange, trust, and dependence have a positive impact on the satisfaction of the

agents (tricycle drivers). Meanwhile, the level of conflict and monitoring on agent’s

satisfaction in the tricycle transport service received a negative impact. The level of agent’s

satisfaction increases because of the reward structure of strong incentives that are

compatible with agent’s efforts. Through this study, the role of the agent’s dependence in

enhancing the relationship between principal and agent to achieve high levels satisfaction

was strengthened. It also contributes on how trust, information exchange, and contracts with

strong incentives tend to increase the level of agent’s satisfaction. The study also provides

the insights on how monitoring, information exchange, trust, dependence and reward

structure can affect the satisfaction of agents.

Local Literature

Public Transportation is commonly used around the world to the fact that almost

everyone had already used it for at least once in their lives. These so called fares are

fundamental to the operation of public transport since they form a major source of income to

operators. In the Philippines, people are somewhat practical on their daily lives especially on

their daily expenses. So if fares increases way up, it is most likely to say that commuters

would try every alternative way just to save up money, giving the fact that not everyone

could afford that much. On the other hand, Public Transport Operators would also have to

brace themselves for their adjustments if ever fares would increases because it would be a

whole new experience for them and the commuters.

 In the Fare matrix of public tricycles, prices are still on the situation wherein changes

aren't still prioritized. The Land Transportation Franchising and Regulatory Board urge the

Local Government Units to review their current tricycle fares after the rollback on jeepney

fares and taxi flag down rates. Moreover, with the concern for public service, the LTFRB

wants the LGU to review their current tricycle fares as prices of gasoline are continuously

going down. Tricycle fares must have the implemented law where the prices of tricycle fares

should be also lowered.

Local Studies

The Functionality of Tricycle Regulation Unit (TRU) of Tuguegarao City focuses on

the public security of every passenger, in compliance of tricycle drivers and operators with

existing city ordinances, This include TRU’s efficiency in the issuance of the franchise

license, maintaining data base and resolving complaints and grievances. However, The TRU

office is relatively undermanned that haste in covering all their tasks leads the staff to getting

less humanely tactful in dealing with violations. Relatively, better staffing as recommended

in this study would make TRU more responsive to closely monitoring the transfer of

ownership of franchise license, and the difficulties among tricycle drivers/operators in

complying with the rules and regulations. To summarize, there is the need of every tricycle

drivers and operators to comply with the rules and regulations to maintain data bases and to

avoid complaints. The TRU's should ensure public safety and must follow the given rule and

regulations for a stable governance.

 RESEARCH QUESTIONS

The study will be conducted by the researchers to determine the effect of the

implementation of the new fare matrix of public tricycles to drivers and commuters.

Specifically, the researchers seek to find answers to the following questions:

1. What are the perception of drivers and commuters on the implementation of the new

fare matrix?

2. What are the effects of new fare matrix on daily commuters?

3. How will the fare matrix affect the profit of tricycle drivers?

4. How commuters and tricycle drivers manage the effect of the new fare matrix?

ABRIDGED METHOLOGY

The study will use qualitative research design specifically, Phenomenological

approach. The study will be conducted to be able to understand, collect and analyze specific

data on how people react and behave on the implementation of the New Fare Matrix at the

municipality of Tumauini, Isabela.

Direct Interviewing will be utilized in this study for better collection of data from the

respondents. Paper questionnaires will be used for guide questions and for the questions to be

in uniform. Surveying technique will be also used on the gathered respondents with different

opinions, insights, and perspectives.

The researchers will be able to use a sampling procedure, specifically purposive

sampling. The sample size will be predetermined considering Tricycle Drivers and

Passengers are very common on the area of the study.

After collecting all the necessary and required information, researchers will have the

entire data compiled, organized and ready for analysis. The gathered data will utilize the
content analysis procedure which refers to the process of categorizing verbal or behavioural

data to classify and summarize the data.

TIMELINE

February 2019

SUN MON TUE WED THU FRI SAT

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28
Preparation Pre-Oral Pre-Oral Duplication
for Pre- Defense Defense of
Oral and and Research
Defense Preparation Finalization Materials
of of
Materials Question-
naires
March 2019

SUN MON TUE WED THU FRI SAT

1 2
Submission
of Request
Letter to
the
Mayor’s
Office
3 4 5 6 7 8 9

Data Data Chapter IV Chapter IV Chapter IV Chapter V Chapter V

Gathering Gathering

10 11 12 13 14 15 16
Submission Revision of Revision of Passing of
of Initial Final Paper Final Paper Final Paper
Final Paper

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31
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