Getting around Manila through tech-based carpooling

MANILA, Philippines – In the daytime, Metro Manila is home to around 20 million people. At any given time, thousands are on the move: heading to the office, going home, running from one meeting to another.

All this movement is a burden to a transport system that’s woefully inadequate to deal with the demand. The trains are either bursting at the seams or suffering technical glitches; buses are full to brimming. Private cars with a passenger or two crawl along EDSA, while passengers try to hail taxis sometimes pressured to pay additional tips.

In the last couple of years, the Philippines has seen the entry of app-based ride-hailing services that provide passengers with transport options at the touch of a button. Uber and Grab are the best-known names in the industry, providing passengers with their own cars simply by using their smartphones.

But critics say these services are exacerbating the traffic problem. They point out that enterprising businessmen buy more vehicles and hire drivers for Uber and Grab, essentially increasing the number of vehicles crowding an already congested road network.

Transport officials have underscored their focus in proposing solutions: move more people, not cars. Last year, the Metropolitan Manila Development Agency launched an app to encourage Facebook friends to start carpooling. There have also been suggestions to allot a high-occupancy lane along EDSA exclusively for cars with 3 or more passengers. (READ: Taming Manila traffic: Hits and misses of 2015)

Last month, Uber followed suit with the launch of its newest ride-sharing service, uberPOOL. The company said this aims to put more people into fewer cars, coordinating the logistics of a traditional carpool setup using technology.

The new service promises a fixed fare that’s estimated to be 25% cheaper than usual UberX fares. In exchange for cheaper fares, passengers have to share the ride with others, and they should expect longer travel time as the vehicle makes several detours to pick up or drop off other riders.

As with Uber’s initial launch in Manila two years ago, the concept of uberPOOL carried with it a degree of uncertainty, said Uber Manila’s general manager Laurence Cua.

But, he added, Filipinos’ quick adoption to uberPOOL showed that they’re becoming more open to trying out new technology solutions.

“I think what we’re learning is that people in the Philippines are very tech-savvy, they’re very progressive, very open-minded about embracing new concepts. And with technology, something like carpooling becomes safer and more convenient because you don’t have to match or pre-plot…With uberPOOL, we knew that we could solve those problems efficiently with a tap of a button,” Cua said.

Carpooling with tech

But before uberPOOL was launched, another carpooling app had already entered the Philippine market. European carpooling app Wunder launched earlier this year, with the goal of connecting riders with others who have empty seats in their car.

Unlike Uber and Grab, trips on Wunder are limited, so that passengers only chip in for the cost of gas as drivers travel to or from their destination. It is not meant to be a profit-making business.

The launch of carpooling apps in the Philippines may indicate that Filipinos are not hesitant to take to the ride-sharing concept. (READ: Uberpool in Manila: Adjusting to the metro’s unpredictable traffic)

“Carpooling in general is not a very new concept, especially for the Philippines. We’re a very communal people, we’re very friendly. And we don’t mind sharing things, mabait tayo eh…People are just more socially dynamic,” Cua said, noting the positive feedback two weeks since the launch of uberPOOL.

But the traditional carpooling setup, where groups of people discuss what time to leave and where to meet up, is a process that’s been made easier by technology. Instead of having to pre-determine carpool trips beforehand, these technology-based apps allow on-demand ride-sharing services.

Cutting cars on the road

Uber touts its carpool service as a cheaper and more environmentally-friendly option: riders cut their transportation costs, while helping cut down on greenhouse gases with fewer cars on the road.

“If you keep doing that again and again, with thousands and hundreds of thousands of people, then you’re now able to make scalable and high-impact changes on how people move around,” he said.

But despite this new thrust in the company’s goals, Cua said drivers who want to partner with Uber should not be concerned that the company will also cut down on driver applications.

He pointed out that demand for decent transportation in Metro Manila remains high.

“As long as there are people who are looking for a ride to get around, then there’s gonna be demand for something like Uber. And so that should not be a concern…We do want to see more drivers use Uber, and the main reason for that is there are people looking for their services,” he said.

The carpooling service also aims to discourage people from buying more cars, which end up being underutilized in parking lots anyway, Cua added.

But what about criticism that Uber is actually encouraging people to buy more cars? Cua pointed out that car ownership has been steadily growing over the last 10 years, buoyed by more purchasing power for consumers and riding on a growing economy. This, Cua said, happened even before Uber entered the Philippine market.

When Uber entered the scene, it became an avenue for drivers to make extra income to help pay for the vehicle that they would have bought anyway, Cua said.

He also said that the company is hoping to discuss with government the current limitations on the cars allowed on Uber. Currently, only cars that are 3 years old or newer are allowed on Uber, but Cua said they’re eyeing to relax this as long as the vehicle is still in good shape. By doing this, drivers won’t feel compelled to get a new vehicle, he added.

“Rather than having it sit in a parking lot or forcing people to buy new cars, let’s just use what’s out there and put them on UberPOOL, or even just UberX, or both. Now the concept of car-sharing can tap into more underutilized assets,” he said.

Complementary government solutions

With a new set of officials handling the Metro Manila traffic situation, Cua hopes that ride-sharing can be more widely adopted by Filipinos and readily supported by the new administration.

He also said that Internet connectivity should be improved and made more reliable, so that transport solutions that rely on technology would be more efficient.

Improving public transportation systems should remain a top priority, he added. In developed countries with efficient public transport, Uber plays a role in addressing the last-mile problem, or ferrying riders from the bus or train station to their final destination.

“Here in Manila we know it’s already happening on some level, and as infrastructure gets better, Uber can also play a complementary role to help out those people who use those modes of transport,” he added. – Rappler.com