Topic > Ride-Sharing Service Implementation in the Philippines: Issues and Challenges

Everything in the modern world is about ease and comfort. Technological innovation has always been oriented towards finding a way to make human life easier. However, it has long been difficult for us to find a solution regarding Metro Manila traffic. Many have thought of ways to relieve stress and reduce long hours spent commuting, which now brings us to the era of ride-hailing apps. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Transportation means now range from an unlicensed taxi service to public utility vehicles (PUVs) to ride-sharing services like Grab, the most popular ride-hailing application in the Philippines. Grab is defined as a "ride-sharing" service, a misnomer when applied to single-fare rides but accurate when referring to the carpooling service offered by the company (PCMag). Since its arrival in the Philippines in early 2013 (Calvin), Grab has been a staple application in many people's smartphones. But why has the traffic situation in Metro Manila gotten worse despite these so-called “improvements”? Some may say that there are almost no problems for consumers of these ride-hailing apps, but as much as there are pros, there are also cons. Rising prices is the main reason that comes to mind. This is the method of pricing in the free market that depends on supply - number of cars available, and demand - number of passengers booked (Jalloh). Often during peak hours, the price could quadruple compared to when there is no peak hour. Commuters are therefore faced with the dilemma of deciding whether it is worth paying ten times the price of a bus for the luxury of a semi-private car. More often than not, though, most drivers are nowhere to be seen when they are needed most. In an interview I had with my neighbor who is a Grab driver, he said that usually he and his fellow drivers don't go out driving during rush hour because the money they earn during that time is not worth their expenses ; it can be in terms of gas, effort or time. If you think about it, commuters feel a sense of relief in the back of their mind knowing that even if the traffic is extremely heavy, they can travel comfortably thanks to Grab. However, in reality, there are only a few chances to book a ride during peak hours. To simplify, from the customer's perspective, it's like considering a choice you can't even make. This is all due to heavy traffic and how much less the drivers earn due to the difficult circumstances. Again to my surprise, I learned that Grab drivers earn less than what they work for. Before Grab acquired Uber in Southeast Asia1, there were 43,000 drivers, but as of May 2, 2018 in the Philippines (Rey) there were approximately 35,000 drivers serving 600,000 bookings per day. The numbers have steadily declined since then. This is due to the recent suspension of the P2 per minute rate, which left many drivers with no choice but to opt out due to low income. It's quite suspicious and contradictory how consumers find it expensive to use Grab, but drivers can't even earn the amount of money they need that is worth their time and effort. Grab only gives incentives to its drivers if they reach the quota that is not reasonably achievable in an eight-hour shift. According to Jericho Nograles, representative of the PBA party list, in a consultation with Grab drivers, it was possible to earn only if they travel the roads for 18 hours, 6 days a week).