Thursday, March 31, 2016

TNC: The Next Generation of Commuting in Metro Manila

Introduction

Many commuters have been getting fed up with abusive taxi drivers and undisciplined bus and jeepney drivers who back up traffic just to get more passengers. Combine this with the steadily worsening traffic situation in Metro Manila, and many commuters blow a fuse (sometimes literally) at how much time and energy they've lost just commuting.

Enter the Transport Network Company (TNC) that fill in the void that harassed commuters find themselves in. TNCs service a very specific niche of commuters who don't have or don't want to use their private vehicles yet don't want to suffer through the chaos that is Metro Manila's public transportation. Their entry has generated backlash among the more traditional transport groups, notably taxi drivers and companies, who feel threatened that commuters now have an alternative mode of transport.

While using a TNC service can be pricey, it often beats flagging down several taxis only to be refused service or to suffer through the kontrata system of drivers that do agree to the ride. TNCs are also generally safer and their growing popularity has shown that commuters have had enough, and they're expressing this through their wallets.

Here is a short list of TNCs that are currently operating or are about to operate in Metro Manila (as of March 2016):

Uber
Website: https://www.uber.com/cities/manila/

Uber was officially launched in San Francisco, California in March 2009 and has since made waves around the world as an efficient and comfortable alternative to taxis. Uber officially came to the Philippines in 2014 and comments such as "Uber was a lifesaver" are quite common, to the chagrin of local taxi operators and drivers.

Just set up the app on your smartphone and make sure you have an Internet connection and you're all set. The disadvantage is that you will need a credit card to make payments, although cash payments may be an option in the future.

Uber recently soft launched UberPOOL, a type of car pooling service.

Grab
Website: https://www.grab.com/ph/

This company started in Malaysia in 2011 and made its way to the Philippines also in 2014 (the same year as Uber's entry). Grab is actually a conglomeration of services such as GrabBike and GrabHeli but GrabTaxi is the most commonly recognized service.

Like Uber, you can set up a Grab app on your smartphone. But the difference is that they also have Grab booths in selected locations and they do accept cash payments. Furthermore, ordinary taxis can be used as a Grab vehicle.

The disadvantage is that drivers can charge higher than the rate you see on the app, especially if the destination is far and/or there is heavy traffic along the way.

u-Hop
Website: https://www.u-hop.com/

u-Hop is a Filipino start-up company that began operations late last year. However, there were some issues with the TNC application and the LTFRB halted their operations. Luckily, things worked out and u-Hop has been officially accredited since this month.

Like other TNCs on this list, they have an app which you install on your smartphone. But unlike the others, they offer a modified shuttle service where you specify a pick-up/drop-off location (which can be your house) and they pool other nearby commuters who are also subscribers into the same vehicle. This arrangement is closer to the UV Express model than the taxi model of other TNCs.

You can sign up on their website and choose to pay weekly or monthly for the service.

Wunder
Website: http://www.wunder.org/en/

Wunder is a carpooling app that started in Germany in 2013 (from the same guy who founded Airbnb). It has become increasingly popular in Europe and made its entry in the Philippines only last month.

However, the LTFRB hasn't granted a franchise yet so we don't know how well this service will take among Metro Manila's commuters.