E-Bike Boom Sparks Regulatory Crisis: LTO Urged to Act on Unregistered Vehicles
E-Bike, E-Trike Boom Creates Regulatory Crisis in PH

The rapid and unregulated spread of electric bikes (e-bikes) and electric tricycles (e-trikes) across Philippine roads has ignited a pressing national controversy, demanding swift and decisive intervention from authorities, particularly the Land Transportation Office (LTO).

Outdated Laws and Regulatory Confusion

At the heart of the issue lies a legal framework struggling to keep pace with technological change. The primary law governing road use, the 60-year-old Republic Act 4136 or the Land Transportation and Traffic Code, is widely seen as insufficient for managing this new mode of transport. Even the more recent RA 11697, the Electric Vehicle Industry Development Act, along with its implementing rules, may require significant adjustments to curb the unchecked proliferation of these vehicles, which has sown confusion from Luzon to Mindanao.

This confusion is compounded by conflicting LTO directives. While LTO Administrative Order 2021-039 specified that only certain types of e-vehicles require registration and a driver's license, subsequent orders mandated registration for all, even requiring helmets. This blanket registration order was later recalled by the LTO due to administrative and legal concerns, leaving a significant policy vacuum.

Convenience Drives Skyrocketing Sales

Despite the regulatory chaos, consumer demand for e-bikes and e-trikes has exploded. A key driver is the search for affordable alternatives to increasingly costly traditional transport. Many families, especially those facing prohibitive daily "pakyaw" fares for tricycles ferrying children to school, have turned to these electric options.

Their appeal is clear: they offer affordable down payments and monthly installments, require no vehicle registration, and need minimal parking space. For many households, they present a more convenient and accessible option than a four-wheeled private car.

Risks of Unregulated Public Transport and Unfair Competition

This very convenience, however, has created a new problem. Entrepreneurs are capitalizing on the regulatory gap, using e-bikes and e-trikes as de facto public utility vehicles (PUVs) without securing the necessary franchises from government agencies. These vehicles are often rented out daily to drivers on a boundary system, mirroring the operations of traditional jeepneys, tricycles, and taxis.

This practice has led to the emergence of unregulated fleets operating as public transport in towns and cities, contributing to road congestion and posing as unfair competitors to legitimate, franchised PUVs. The situation carries grave safety implications. Since these vehicles lack franchises, they are not covered by mandatory accident insurance, putting the lives and limbs of both drivers and passengers at serious financial and physical risk.

Furthermore, as unregistered vehicles, their owners do not contribute the Road User's Tax, a fee that ostensibly grants registered vehicles the right to use public roads. The LTO now faces mounting pressure to formulate clear, enforceable, and modern regulatory policies to bring order to this growing segment and ensure the safety of all road users.