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Do people understand what Uber and Grab really are?

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Over the holidays, I’ve read a lot of posts about Uber and Grab. Mostly, these were complaints about the surge pricing scheme of Uber. A lot of people cited the exorbitant rates Uber charged for trips even short ones like Ortigas to Center to Greenhills and Trinoma to Katipunan. Though the complaints are legitimate ones, I also try to see the other side of the coin considering Uber and Grab do tell potential passengers how much it will cost them for such commutes during peak periods (i.e., when roads are congested). Potential riders do have a choice whether they should take the rider (and therefore agree with the fare stated by the app) or take another transport mode instead. The issue here should not be entirely Uber’s or Grab’s fault. Our public transport system, particularly in Metro Manila, sucks. And that includes the conventional taxis that could have provided better services if regulations were strictly implemented or if the operators managed their drivers and maintained their vehicles well. Based on my experience, taxis in Cebu, Iloilo and Davao, for example, are better managed and regulated, and provide better service quality than those in Metro Manila.

Then there were the joint LTFRB and DOTr advisory for Uber and Grab units and the LTFRB order on surge pricing and fare rates.

dotc-ltfrb-advisory-24dec2016

 

ltfrb-order-27dec2016

From both cases, it is clear that car-sharing or ridesharing services like Uber and Grab are treated as taxis rather than as premium services that likely entail higher fares but are subject to prospective passengers’ willingness to pay for such services.

Such opens the door for more questions than answers: Is this a misunderstanding or perhaps a deliberate action on the part of Philippine regulators (LTFRB and DOTr)? Why can’t they impose the same standards for vehicles, operators and drivers of conventional taxis? Wouldn’t it be in the best interest of the general riding public for LTFRB to clamp down on conventional taxis in order to reduce dilapidated vehicles as well as unqualified drivers? Surely, conventional taxis will become more attractive if they provide better services including significant reductions in the incidence of typical complaints against taxis like negotiating fares and refusing passengers because of their destinations.

Here are some more questions that need clear and objective answers for one to have a fair assessment of these services:

  • Do these show how much we (both commuters and regulators) understand how these car-sharing modes are supposed to operate?
  • Do officials at DOTr and LTFRB, who are supposed to be regulators of public transport services know how Uber and Grab are supposed to operate?
  • How do they really fit in considering all the other modes of transport available to commuters?


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