THERE exists an imbalance between the supply of transport network vehicles and the demand for the service in the country, which the general manager of Grab Philippines said will be addressed through the lifting of the Land Transportation Franchising and Regulatory Board’s moratorium on the application for new franchises.
Grab Philippines General Manager Brian Cu said there is a huge demand for the service given the sorry state of the traffic and mass transportation in Metro Manila. But the supply of drivers, he said, is not enough.
“About 60 percent to 70 percent of our drivers are full time. The rest are just part time. They are not enough for the demand,” he said in an interview. “That is why we are introducing products, like Grab Share, to supply that demand.”
The company launched Grab Share last week. The product allows a commuter to book for a ride and share it with another passenger. By sharing a ride, the passenger can save up to 30 percent on regular fares.
This also allows the driver to earn more, Cu said, and at the same time, address slightly the demand for the service.
Currently, the application process for TNVS franchises is on hold, given the number of pending applications before the LTFRB.
Data from the regulator showed there are 27,062 applications received, involving 29,151 units.
Broken down, there are 4,808 Grab franchise applications, involving 5,727 units; 22,126 Uber franchise applications, involving 23,293 units; and 128 Uberhop applicants with 131 units.
Cu said there is also demand for the Grab service outside Metro Manila.
“As much as we would like to expand to all cities, there’s still a franchise suspension by the LTFRB,” he said. “Hopefully, the LTFRB lifts the moratorium because cities demand for Grab services.”
The ride-hailing company operates in seven cities now. Out of the total, the Grab Car service is only available in three: Metro Manila, Cebu, and Bacolod.