Booked!: How Ride-Hailing Apps Are Steering the Future of Philippine Transportation
WORDS Anne Alejandre, Gerie Consolacion, Juaymah Ferrer, Nickolo Lungay, & Rossyvett Narvaez
PHOTOS Nickolo Lungay INFOGRAPHICS Gerie Consolacion
Metro Manila sees millions of commuters every day using its complicated transportation system. As of 2024, the Metro Manila Development Authority (MMDA) estimates that about 13.4 million trips are made daily in the metropolitan area. This number shows the huge demand for public and private transportation in one of Southeast Asia’s most crowded regions.
According to data from the Department of Transportation (DOTr), the EDSA Busway alone carried over 47 million commuters in 2023, highlighting the importance of efficient transport systems for getting around the city. Taxis are also a key mode of transport, with more than 25,000 taxis operating nationwide as of October 2021. Many of these taxis serve Metro Manila, showing their vital role in the daily commute for thousands of people.
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The traditional taxi industry in Metro Manila has been a central part of the city's public transportation system. Before ride-hailing services became popular, taxis operated under a regulated system with set fares and routes, offering reliable service to commuters. However, with the rise of companies like Grab, Angkas, and JoyRide, the public transportation scene has changed dramatically.
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Local taxi drivers say that the introduction of ride-hailing services has greatly affected their work. Before the pandemic, taxi drivers had a more stable income due to less competition and a steady flow of passengers. However, the pandemic was tough, and many drivers stopped working. After the pandemic, competition has increased, with motor taxis becoming popular for their ability to navigate through heavy traffic more easily. This change has led to a decline in the taxi industry, with fewer new drivers entering the field and many existing drivers struggling to make a living.
How do ride-hailing companies steal the wheel from the taxi operators?
In recent years, the Philippine transportation network vehicle services (TNVS) sector has seen significant growth and change. The rise of app-based ride-hailing services has transformed how Filipinos travel, providing more options than ever. Companies like Grab, Angkas, JoyRide, and Move It have become major players in this sector, each offering unique services to meet the needs of commuters.
Grab entered the Philippine market in 2013 and quickly became one of the leading ride-hailing services in Southeast Asia. Angkas launched in 2016 but faced major regulatory challenges, with the government initially suspending their operations. After legal battles and pilot programs, Angkas was eventually allowed to operate under specific conditions. JoyRide and Move It also established themselves in 2019.
The Land Transportation Office (LTO) in the Philippines acknowledges that TNVS provides benefits such as better access to transportation, increased convenience for passengers, and potential job creation for drivers. However, there are challenges, including ensuring compliance with regulations, balancing market competition with fair practices, and addressing safety and service quality concerns.
The chart shows the total number of drivers from different ride-hailing companies and the traditional taxi companies.
In a recent survey of students, most reported using ride-hailing apps. The factors influencing their choice between ride-hailing services and traditional taxis include convenience, price, and accessibility. The survey shows that students generally find ride-hailing services more time-efficient and affordable than traditional taxis, with many also viewing these services as more comfortable and safer.
When it comes to service quality, Grab ranks as the top ride-hailing app, outpacing traditional taxis. Grab is also considered the most convenient service, followed by Move It. Additionally, respondents noted that ride-hailing services are more accessible than traditional taxis, and they feel safer using these apps because of features like ride tracking, driver information, and enhanced security measures.
The researchers interview students whose ages range from 20-22 years old. Five were women and a man.
According to the data, these students prefer riding ride-hailing apps instead of taxis.
Are there any taxis after five to ten years?
The continuous growth of ride-hailing companies has significantly impacted the livelihoods of taxi drivers, especially during the pandemic and amidst the heavy traffic in Metro Manila. This situation is one reason commuters prefer ride-hailing services over traditional taxis.
To understand this better, we asked taxi drivers how ride-hailing companies have affected their daily income before, during, and after the pandemic.
"Malaki ang kinahinaan namin dahil marami silang namamasada, malaki yung kawalan sa amin.".
(It really affects our operation since there's a lot of drivers [in ride-hailing services]; it's a big loss for us.)
"Humina kami, malaki yung hina namin," he added.
(Our livelihood weakened. Our income is sadly decreasing.)
"Malaking epekto 'yon! Bagsak ang industriya ng taxi kasi walang nake-create na bagong taxi driver tapos nagmamasada na lang ng motor. Tapos yung pasahero nila syempre kabawasan din sa’min ‘yon, malaking epekto ‘yon."
(Big impact: ‘yes! The taxi industry has collapsed so much that no new taxi drivers have been created and they have just chosen the motorcycle. After all, their passengers will of course also be reduced to us, ‘yes, big impact’.)
Additionally, we asked how they compare the situation of taxi operations before and at the present time.
"Dati maganda kasi wala kami gaano kakumpitensya, ngayon marami na. Nag-click na yung motor e, so katwiran ng mga passenger hindi sila male-late kasi sobrang traffic ngayon talaga.".
(It was better before than at this time because there's no competition, unlike these days. It's really convenient for the passengers to use the ride-hailing services because they will arrive earlier, especially due to the traffic.)
We also asked them what their vision of the taxi community is 5 to 10 years from now.
"Ay, sa tingin ko baka, kung tuloy-tuloy yung ano [ride-hailing apps], baka mawala na itong taxi, baka puro motor taxi na tatakbo kung hindi masolusyonan itong traffic," he said.
(Yeah, I think if we keep on ride-hailing apps, we're going to lose that taxi, and motor taxis will dominate if we don't solve this traffic problem.)
This graph is a visual representation of the income gap between ride-hailing app drivers and taxi drivers.
This graph shows the continuous decline in the income of taxi drivers from 2020 to the present.
However, taxi operators have also been affected by the emergence of ride-hailing apps, which directly impact their businesses. The researchers interviewed ALTA Taxi, a company based in Mandaluyong City. They noted that these ride-hailing services present many challenges, not just for operators but also for drivers. Along with the ongoing decline in their income, some of their drivers have switched to working for these ride-hailing companies.
The chart compares operators’ income from 2020 to the present. According to them, some taxis remain unused by drivers, so to avoid losses, they rent them out to other drivers for a day, earning only the rental payment.
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Additionally, our interviews revealed a continuing decline in the number of taxis and drivers. In some cases, two drivers share one taxi on certain days to maximize usage.
From an economic perspective, we explored how ride-hailing companies impact the livelihoods of drivers and operators. For taxi operators, the issue revolves around supply and demand. Ride-hailing services are currently in high demand, while demand for traditional taxis continues to decline. This competition negatively affects taxi operators' revenues and wages.
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Jester Ordanza, a third year BS Economics student from the University of the Philippines - Los Baños noted that taxi operators have limited ability to adapt to changing market conditions because they are regulated by the LTFRB. This situation also leads to issues with idleness and productivity in the labor force of taxi operators.
As ride-hailing services grow, their revenues increase, which can boost purchasing power. Higher income levels can positively impact the overall GDP of the country. Conversely, for taxi operators, reduced income lowers their standard of living, income, and purchasing power.
"Basically, nakakababa rin siya ng overall GDP ng isang bansa," the economics student finalized.
(It would lower the overall GDP of a country.)
Commuter’s Diary: Their testimonials on who is more deserving to control the wheel
The interviews revealed that these students have a monthly allowance ranging from a minimum of 5,000 PHP to over 20,000 PHP. The typical fare for ride-hailing apps ranges from 89 PHP to 300 PHP, depending on the distance between the pickup and drop-off locations.
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Additionally, the ratings from the interviewees reflect their experiences with both ride-hailing services and traditional taxis.
The researchers interviewed students aged 20 to 22 who regularly commute to school.
Moreover, this chart shows how often these students use ride-hailing apps to book a ride. While some still rely on trains, buses, UVs, and jeepneys for transportation, others use ride-hailing apps as their primary means of getting to their destinations.​​
When it comes to the quality of service, Grab is the leading application with the average mean of 4.67 leaving behind the traditional taxis with an average mean of 3.33 considered as the lowest.
However, some experiences contribute to the ongoing distrust of the public when it comes to riding taxis. There have been news reports about drivers using sedatives or aerosols in the taxi’s air conditioning, making customers feel dizzy and sleepy for malicious purposes. The graph shows that 66.7% of our respondents reported being harassed or encountering dangers while riding taxis.
Although all ride-hailing apps and traditional taxis are accessible to commuters, some are still considered more convenient. The graph shows that Grab leads in convenience with an average rating of 4.83, followed by Move It with an average of 4.5. Traditional taxis are rated the least convenient, with an average of 3.5.
What do we need to do now?
It is undeniable that ride-hailing services are currently on its peak in the market — they reign supreme leaving the taxi industry behind their competition. Consumers always have the choice and these decisions are the primary factors of the sudden shift with regard to the business and economic change.
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Concerning it might seem but this is inevitable; and the only thing that the taxi community could do is to keep up with the present-day standards. However, due to the demand of the people and the lack of support from the government, it is saddening that they are not the same as they used to be.
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Traditional taxis do not have much to offer which became their weakness. Wherein, this weakness turned out to be the ride-hailing companies’ strength. For instance, they have fixed and lower rates depending on the distance that the passengers patronize because they can save a lot. In contrast, the taxi community is more expensive because of its fare system erasing the concept of affordability — taxi meters continue to run even on traffic surges.
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Meanwhile, the ride-hailing services give various discounts and vouchers to minimize the customer’s payable amount and it is a huge influence to the individual’s perspective when it comes to choosing a brand, product, or service which corresponds to the survey we did.
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Furthermore, the result of the survey showed that accessibility, convenience, and security are crucial elements for passengers when riding a transportation. Most of the respondents answered that ride-hailing services are easy to book and riders can fetch them in cramped places.
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They also found comfort and safety as the information of the drivers are displayed in the app. Unlike the former, the traditional taxis cannot provide those features because they are still manually operated. “Nag-click na yung motor, eh. So katwiran ng mga passenger, hindi sila male-late kasi sobrang traffic ngayon talaga,” one of the taxi drivers told us in the interview.
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“Motorcycle taxis became rampant. Our passengers reason out that they will not be late to their errands anymore [because motorcycles can cut through the traffic.]”
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As the numbers of traditional taxis regress, Ordanza said that it is possible to have a phaseout on the community as well. Job losses are a probable repercussion and an increase to job loss is also an increase to unemployment rate which is a serious issue in the Philippines and can cause a bad image for the country.
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While the ride-hailing services maintain its popularity, the income of those in the taxi industry declines. “It highlights a widening income gap between those who can adapt to the advancement or technological improvements and those who cannot,” Ordanza added. This gap has a web effect on our overall Gross Domestic Product (GDP). Although revenues are not the sole basis, yet it still damages the GDP if the income disparities extend to spread widely.
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With the ongoing crisis that the traditional taxi industry faces, commuters must reflect and should not always think of themselves but rather help amplify the voices of those who are in the labor forces such as our taxi drivers. Their fight is also our fight and our small efforts can contribute to create a bigger and powerful call to draw attention for those who have authority.
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Ride-hailing companies might grow in numbers, but the avoidance of phasing out the taxi industry in the near future must be considered. In the words of Ordanza, “for us normal citizens, raising awareness of such is a must to take care of all these labor forces because they make the utmost of the GDP. So if you really are for economic development or growth, I believe, no sectors nor groups should ever be left behind.”
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That is our pivotal and fundamental role as individuals and at the same time consumers.
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This paper contains information from the internet and interviews from taxi drivers, a taxi operator, and an economics student. The group tried to contact, email, and visit Grab, Angkas, JoyRide, and Move It. However, they are unresponsive and difficult to coordinate. The same situation happened with Basic Taxi. On the other hand, Dollar Taxi was given a letter of request for data gathering and promised a call for an interview, but as of writing the paper, the group has not yet received either a text message or a call from them.
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The group also emailed the Land Transportation Office (LTO) multiple times but they did not get any replies from them. As for the Department of Transportation (DOTr), they said that they could not accommodate any interviews because their schedules are fully-booked. Lastly, the Land Transportation Franchising and Regulatory Board – National Capital Region (LTFRB-NCR), directed us to email their central office instead. The central office then instructed us to email their Information Systems Management Division (ISMD) for an interview but up until now, the group did not get any response from the agency.