IN THE past few years, transport network companies (TNCs) have been at the forefront of a digital revolution across different regions of the globe. These companies have come up with applications that enable users to avail of private transportation vehicles through their mobile devices. In the Philippines, TNCs such as Uber and Grab have already gained wide recognition in different cities because of their services.
Moving towards improvement
According to an article by Business Mirror, Uber Regional Director for Southeast Asia and Australia Michael Brown said that Filipinos are using TNCs because of their “affordability, reliability and safety.”
“People don’t want to haggle or worry about whether they will be taken down to some dark alley. And they want to know that whatever time of the day it is…they can count on their transport to be there for them,” he said.
Meanwhile, Department of Transportation and Communications Secretary Jun Abaya said in the same article that many Filipinos patronize these apps because it gives them a new option to navigate different places in a safer and more convenient environment. “Certainly, technology is necessary to improve the transport industry. [It] is evolving at such a rapid pace…that it has made quality of life better for all,” he said.
Tales of success
Despite being rivals in the privatized transport business, the technological businesses of Uber and Grab share similar successes.
While originally starting out in the United States, Uber is seen as a popular option of privatized transport in Asia. “Investment in Asia, including China and India, is our biggest investment as a company,” said Douglas Ma in an interview with the Nikkei Asian Review. Ma, who heads Uber’s expansion across Asia, explains that due to the large markets that were present in Asia, the opportunities there were immense.
Grab shares tales of similar successes. With its roots in Singapore, Grab has grown to be a hit across different areas in Southeast Asia. At present, Grab currently operates in 30 cities in countries such as Singapore, Indonesia, and the Philippines, among others.
The rise of TNCs within the country provides success and opportunities as well to drivers who work under such companies. An article published by the Philippine Star tells of the experience of Ronel Diapana, who had been previously earning Php 500 a day while working as a local taxi driver. After working for GrabTaxi, Diapana found himself with a daily profit of Php 900, which he shared was big enough to feed his family. “Since I used the app, it’s no longer hard for me to look for commuters especially [outside] rush hours,” he said. He added that the application has helped him become more advanced in his work.
An unfair battle
Despite Uber and Grab’s success, many critics voiced out their concerns regarding the operations of the companies in the country.
In an interview by Business Mirror, Philippine National Taxi Operators Association President Jesus Manuel Suntay said that transport network businesses are eating the market share of the taxi industry, placing the regular taxi driver at the losing end.
He explained that a regular taxi driver earns about Php 1,200 per day. With the TNCs coming into the picture, Suntay said that their income has fallen. “Because of the traffic, our income gets lower; add to that the competition with these companies. At times, it is very hard to get a passenger, and these two problems contribute to that,” he explained.
Although he has acknowledged that competition benefits the economy, he also said that there must be an equal level playing field between TNCs and regular taxi operators.
Suntay said that the regulations for TNCs and regular taxis are different despite the similarities in their services. “For [regular] taxis, we are only allowed to operate a certain number of units…We are also required by the government to print on the body of our units [our company and personal details]. Uber and Grab have no such requirements,” he explained.
He said that regular taxi operators are also complaining on the unequal regulation of fares. “We are barred from asking our passengers for higher rates, but Uber and Grab have the power to increase their fares whenever they want to,” Suntay said, referring to the “surge” feature of the apps that allows it to collect higher fares.
Abaya maintains that the entry of TNCs in the Philippine market promotes social inclusion because it provides the public with an additional option in public transportation. “It encourages other public-utility vehicles to innovate and improve their services by modernizing their fleet and raising the standards for their drivers,” he said.
But Suntay is not convinced, saying that regular taxi services have already improved their units. He lamented at the government’s lack of concern for them.
Taxi drivers, he said, resort to illegal practices such as choosing passengers and negotiating for fixed prices because they don’t earn enough. “If we want quality drivers, let’s allow them to have quality income,” he said.
