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Formalizing the informal in public transportation: The case of motorcycle taxis transport network service in the Philippines

Author

Listed:
  • Guillen, Marie Danielle V.
  • Gaspay, Sandy Mae
  • Mateo-Babiano, Iderlina
  • Schneck, Justine Alexandra T.

Abstract

This article explores the use of smartphone applications in motorcycle (MC) taxi operation in the Philippines. Adopting the informal-formal dichotomy, and using a qualitative approach, the paper: (1) reviews the development of MC taxis from the livelihood, service, and institutional viewpoints; and (2) explores the evolving forms of MC taxi regulation, including the role of technology, competition, ownership, and agreements. The article confirms the Philippine's long history with motorcycles. It reinforces the role of motorcycles in filling the public transport gap. Ideally, a good public transport system meets the “formal” service standards. However, the policy response has persistently been reactive. Transport network companies used technology to advocate for drivers' livelihoods and legitimize their operations. Unfortunately, this is also symptomatic of the bigger issue that needs to be tackled, the need for a modern or formal urban public transport system that meets commuters' service quality expectations. These expectations include comfort, access, reliability, and environment-friendliness, as well as fair income and benefits for the MC drivers. While app-based technology can improve mobility management, it should also be consistent with the national policy and service quality expectations of commuters and contribute towards more secure livelihoods or income needs of drivers.

Suggested Citation

  • Guillen, Marie Danielle V. & Gaspay, Sandy Mae & Mateo-Babiano, Iderlina & Schneck, Justine Alexandra T., 2026. "Formalizing the informal in public transportation: The case of motorcycle taxis transport network service in the Philippines," Research in Transportation Economics, Elsevier, vol. 115(C).
  • Handle: RePEc:eee:retrec:v:115:y:2026:i:c:s0739885925001647
    DOI: 10.1016/j.retrec.2025.101681
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    References listed on IDEAS

    as
    1. Roberto Dell'Anno, 2022. "Theories and definitions of the informal economy: A survey," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1610-1643, December.
    2. Nguyen-Phuoc, Duy Quy & Nguyen, Ha Anh & De Gruyter, Chris & Su, Diep Ngoc & Nguyen, Vinh Hoang, 2019. "Exploring the prevalence and factors associated with self-reported traffic crashes among app-based motorcycle taxis in Vietnam," Transport Policy, Elsevier, vol. 81(C), pages 68-74.
    3. Alimo, Philip Kofi & Rahim, Abdul Basit Abdul & Lartey-Young, George & Ehebrecht, Daniel & Wang, Ling & Ma, Wanjing, 2022. "Investigating the increasing demand and formal regulation of motorcycle taxis in Ghana," Journal of Transport Geography, Elsevier, vol. 103(C).
    4. Mateo-Babiano, Iderlina & Recio, Redento B. & Ashmore, David P. & Guillen, Marie Danielle & Gaspay, Sandy Mae, 2020. "Formalising the jeepney industry in the Philippines – A confirmatory thematic analysis of key transitionary issues," Research in Transportation Economics, Elsevier, vol. 83(C).
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    Keywords

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    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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