The number of people who own a motorcycle in the Philippines is
nowhere near that in Vietnam or Thailand, where motorcycles are nearly
twice as many as people. But over the past decade, motorcycle
registrations have nearly doubled nationwide, even while that of cars
have declined by about a third, data from the Land Transportation
Office (LTO) showed.
Growth was faster in the National Capital Region (NCR) at 150% from
2014 to 2024. About one in five new motorcycles being registered with
the government since the pandemic come from the NCR, the center of
business and finance, up from about 16% in the prior five years.
"The popularity of motorcycles and motorcycle taxis is driven by the
shortage of public transport," said Robert Siy, a transport economist.
On-the-ground evidence was also palpable. Motorcycles would swerve
through the daily gridlock, ferrying food, packages and passengers
from students to workers. If not on the road, drivers would often
conjugate in an area, waiting for passengers to book them as so-called
“riders” through an app. Motorcycles also have dedicated traffic lanes
like in
EDSA, the 21-kilometer stretch connecting six of the 17 Metro Manila
cities, where over 300,000 vehicles pass everyday.
More motorcycles ply Metro Manila roads
Share of new motorcycle registrations in the National Capital Region
Joyride,
Move It
launched
Source: Land Transportation Office
The expansion can be traced back in 2016, when Angkas, a local firm,
entered the ride-hailing business in Metro Manila with motorcycle
taxis. At the time, more established companies Uber and Grab were
gaining a foothold in the capital, fueled not only by the lack of
public transport options, but also by soaring middle-class incomes and
a low interest rate environment that made buying vehicles affordable.
But as
traffic worsened
in Metro Manila, Angkas's business got more popular to Filipinos
looking for a quicker way to get around city traffic. Because
motorcycles are compact enough to pass through smaller roads, they are
able to avoid congestion on main roads, saving time in commuting.
Grab, after
acquiring Uber's business
in Southeast Asia in 2018, tried to compete with Angkas by offering
motorcycle taxis, but the venture slowly fizzled out. More local
players followed Angkas's lead though and now, there are three major
motorcycle taxi companies operating in the NCR.
On the part of the riders, motorcycle taxis are a viable source of
livelihood. Take the case of Arno Vinzon, a 42-year-old motorcycle
taxi rider from Rizal, south of Manila. In 2019, Vinzon quit his job
of four years at a local pharmaceutical company to go full-time
ferrying passengers with his motorcycle. During his first year, he was
earning around P1,500 a day, nearly three times Metro Manila's minimum
wage at the time.
The downside is work hours are longer — he rides from 5 a.m. to 10
p.m. — than when he used to work for a company. He also admitted to
earning much lower these days because of tougher competition, but
added he still preferred working on his own time.
"The earnings are okay, it really just depends on your diligence on
taking trips and your strategy with the bookings that come through the
app," Vinzon said in Filipino.
On same distance and route, motorcycle taxis faster than their car
counterparts
We tracked separate rides of Angkas and Grab in the Metro during the
same hour of a weekday using Strava. Both rides took the same route,
but riding Angkas still saved us a few minutes in traffic.
Pasay to Taguig City
(around 12 noon)
Within Quezon City
(around 9 a.m.)
Pasay to Taguig City
(around 12 noon)
Within Quezon City
(around 9 a.m.)
Pasay to Taguig City
(around 12 noon)
Within Quezon City
(around 9 a.m.)
It is unclear how many motorcycle taxi riders are there because
ride-hailing companies, while already regulated, are not mandated to
publicly report their data. Registration as riders to motorcycle taxi
apps is free, but riders are expected to have their own vehicles to
rent out. At least two firms operating motorcycle taxis, Angkas and
MoveIt, have partnered with banks to offer qualified riders with loans
to purchase motorcycles.
Indeed, the surge in motorcycles on the road is showing up in loan
data in good and bad ways. Data from the Bangko Sentral ng Pilipinas
(BSP) revealed a cumulative spike in motorcycle loans since the
central bank started tracking them separately from auto loans in 2015.
However, as banks's loan books expanded, so did the amount of unpaid
debt.
About 16% of consumer loans that funded motorcycle purchases in 2024
were considered bad loans or in default, three times more than the
average bad loan ratio, BSP data showed. In peso terms, that amounted
to P26.6 billion, about 45% of which were already past due for over 90
days as of the end of last year, according to the BSP.
Soured motorcycle loans soar in the Philippines
The non-performing loan ratio for motorcycle loans is over three
times that of consumer loan average by the end of the fourth quarter
of 2024.
Joyride, Move It launched
Joyride, Move It launched
Source: Bangko Sentral ng Pilipinas
"A key driver was the strategic decision by certain banks to expand
lending in the MCL segment, in response to increased demand for
motorcycles…," BSP said in a statement to the Data Dictionary.
"Overall, while the MCL (motorcycle loan) segment still exhibits
elevated NPL ratios, the BSP views these developments as manageable,"
the central bank added.
The risks to motorcycle riders and passengers go beyond a financial
burden, however. Separate government data showed a jump in road
accidents involving motorcycles nationwide. Last year, road crashes
involving motorcycles reached 15,690, the highest on available data
from 2009.
They came closely behind cars, which typically topped the list of
vehicles involved in accidents. After the pandemic however, motorcycle
crashes have become nearly as common as those of cars. They beat car
accidents in 2022, and from January to April this year, motorcycle
accidents are trending higher than cars, police data showed.
Record number of motorcycle accidents in 2024
Cars and motorcycles are top vehicles most involved in road crashes
in the Philippines.
Move It, Joyride
launched
Highest since at least 2009
Source: Philippine National Police - Highway Patrol Group
Despite the risks, Siy, the transport economist who is also a convenor
of commuter group Move as One Coalition, said Filipino commuters are
left with no choice but to patronize motorcycles as a public
transport.
"If good public transport or active transport options were available,
Filipinos would opt for these choices instead of riding a motorcycle
which today is very stressful to use under local driving conditions,"
he said.
At the very least however, Siy said the government should ensure that
riding motorcycles, or any public transport, is safe to do so.
Nationwide, regulations governing motorcycles are limited partly
because motorcycles are typically within the purview of provinces,
cities and municipalities, not the national government.
One national policy was the establishment of motorcycle lanes in key
roads like EDSA. The government however has floated
a plan to combine them with bicycle lanes, putting both transport modes in the same lane. Siy said the plan,
if implemented, would endanger lives.
"The global safety guidance is not to mix motorcycles in the same
space as bicycles. Any official who advocates mixing motorcycles and
bicycles in the same lane should be held liable for any injury or
death resulting from a road crash," Siy said.
Methodology
Data Dictionary asked select passengers to record their Angkas and
Grab rides using Strava. Time started and ended on departure and
arrival, respectively. The time recorded did not include booking or
waiting times for rides. Rides were taken only on weekdays on the
same hour.
Sources
Bangko Sentral ng Pilipinas, Land Transportation Office, Philippine
National Police
Copyright 2025 - The
Data Dictionary
Project
