Guide to Owning and Operating a Tricycle Route

This article is posted under Filipino franchise

As one of the most ubiquitous forms of public transportation, tricycles are a staple of Filipino life. These vehicles offer affordable transportation, especially in areas where other public utility vehicles, such as jeepneys and buses, are not allowed. As a popular mode of public transportation, operating a tricycle route seems like a good business idea, most especially in areas where there’s limited access to public transportation and have a high volume of human traffic.

Requirements for owning and operating a tricycle route

First off, you will need to invest in a tricycle. A brand new tricycle, including the sidecar, will cost you PhP 60,000 up to PhP 80,000. If you choose to buy a secondhand vehicle, this will cost you about PhP 30,000 to PhP 40,000.

You will need to register your business with the Department of Trade and Industry. This requires the following:

1. accomplished Business Name registration form
2. Tax Identification Number (TIN)
3. list of five business names ranked according to preference
4. PhP 300.00 registration fee

Once this is accomplished, you have to apply to the Land Transportation Franchising and Regulatory Board (LTFRB) to be able to operate your tricycle route. If you are applying as an individual, the following are required:

1. verified petition
2. TIN
3. official receipt and registration of vehicle(s) with year and model
4. proof of Filipino citizenship (birth certificate, voter’s affidavit)
5. Community Tax Certificate
6. Information Data Sheet
7. valid certificate of business name issued by DTI
8. certificate of bank deposit and passbook
9. location map and picture of garage with dimensions, TCT/ tax declaration or contract of lease with specific garage area
10. two copies of passport size (2×2) picture of the applicant with specimen signature at the back
11. zoning clearance for operators with at least 3 vehicles and overnight parking permit for operators with less than 3 units
12. personal appearance of the applicant, or Special Power of Attorney in favor of parent, spouse, son, daughter, or legal counsel

You may also apply with a cooperative, which has the following additional requirements:

1. Certificate of Registration from CDA
2. Certificate of Good Standing from OTC
3. Management Agreement between cooperative and member
4. Board Resolution authorizing the representative to file application

The franchise fee is PhP 3,000, and payment for boundary is PhP 120-150 per day.

Valuable tips for success

Choose an area where you are most likely to get many fares. Tricycles usually serve areas like middle to lower class subdivisions, as well as less-congested spots in cities.

Weigh your options carefully when choosing a tricycle. These vehicles can eat up your profits when it comes to maintenance cost. A secondhand tricycle is cheaper initially. However, you may need to service the tricycle before you can start using it. You may also not get as much use out of a secondhand tricycle as compared to a brand new one.

It is recommended that the owner drive the tricycle him or herself for maximum return of investment. If that is not possible, you should only hire trustworthy drivers that you are sure will treat your vehicle well.

Financing for your new tricycle business

If you need free help on raising capital for your new business, click here

Where to go for more information

The following are reliable tricycle dealers:

Suzuki Motors
Telephone Number: (632) 671-9722 to 28
Fax Number: (632) 671-3857
Email: suzphil@suzuki.com.ph

Honda Motors
Telephone Number (632) 8238001
Fax Number:
(632) 8385356
(632) 8238682
Email: webmaster@hondaph.com

Yamaha Motors
Tel: (63) 49-541-2890
Fax: (63) 49-541-2889

For more information regarding routes, requirements, fees, and other concerns with operating a tricycle business, visit the LTFRB website at http://www.ltfrb.gov.ph/getinformed.html.

Photo Credits: kudumomo

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