AMID recent reports on fare hikes and difficulty to book taxi-hailing apps in the metropolis, Research and Tech Lab (RTL) showed the riding public still continues to prefer transportation network vehicle service (TNVS) for their daily commute.
Out of the 781 publicly shared sentiments across social-media platforms from March to May this year, the homegrown company discovered almost half, or 46.47 percent of online Filipinos choose TNVS as their primary mode of transportation.
Also, 24.46 percent of them go for taxis; 11.91 percent take the bus; 11.01 percent travel via train (MRT, LRT and PNR); and 6.15 percent prefer UV Express, Shuttle or FX.
The study showed price is the differentiating factor for the divided sentiments of commuters, wherein “affordability” drives them in taking their chosen public-utility vehicle (PUV).
The majority of riders, however, like the convenience, security and fixed fares that TNVS offer. Most agree they can save time and energy in waiting and bargaining with just a simple app.
If before, riding a PUV is a daily struggle for commuters, the arrival of TNVS gave birth to a new form of lifestyle. Booking transportation for them has just become a few clicks away. Citing the efficiency of TNVS, subscribers described it as a hassle-free option and offers value-for-money. Users said network vehicles are more reliable compared to regular taxis.
The apps are user-friendly, credit cards can be used to pay, and drivers are well screened as an added form of security. While bad experiences are inevitable, TNVs transport companies can be held liable for any glitch.
Disrupting the traditional way of transportation, the general public became increasingly dependent on this ride-sharing technology. This helped Grab and Uber’s rise to popularity.
With competition limited just only to them, the former dominated the ride-sharing market in Southeast Asia, boasting 2.3 million drivers in 168 cities across eight countries. The latter’s struggle to beat Grab, thus, resulted in their merger—believed as a problematic deal by so many.
In fact, 91 percent of 239 sentiments reviewed by RTL viewed Uber’s end of operations negatively.
The recent monopoly of Grab is pulling down the effectivity of the system, resulting to higher fare rates and dilemma in booking cars. Likewise, unfair practices, including removal of driver incentives, were reported after the merger.
Grab’s domination led to higher ride-rejection rate, leaving passengers with no choice, but to accept high fares rather than take a PUV commute.
The recent challenges besetting the TNVS sector created an impact not only to both riders and partner-drivers, but to related businesses, as well.
Based on the netizens’ sentiments, banks and other financial institutions, insurance companies and automotive sellers benefited in the rise of network vehicles due to the influx of automobile buyers.
Should the problems persist, however, partner-drivers and operators will have no choice but to stop their services. In turn, monthly amortization of recently purchased cars might be affected and the boom of car sales could also slow down. This is an opportunity for regular taxi operators to again penetrate public transport.
To save the industry and give in to the public’s clamor for alternatives, the Land Transportation Franchising and Regulatory Board (LTFRB) already accredited three new transportation network companies (TNCs).
The agency reviews the applications of other six players, which are expected to bring positive impact to the services of TNVS once they start their operations.
Short for Go Laguna, GoLag is seen to accept drivers soon. Its services will be available even in Bulacan, Cavite and Rizal. It will offer a base fare rate of P40, with additional charges of P14 per kilometer and P2 per minute. The surge rate is limited to 1.5 times.
Originally from Davao, HirNa will offer 24/7 customer service and booking hot line. Its services are accessible through smartphone apps and phone calls. This player will use the metered fare system of taxicabs to determine the fare.
Hype will use private cars but reservation can also be done via SMS. Ads opportunities will give extra income to drivers and operators while passengers can avail themselves of promos and discounts. It will follow a base fare of P40 and an additional P14 per kilometer. It caps its surge two times, but will not charge per minute.