In recent weeks, the energy crisis has brought to the forefront the use of electric and hybrid vehicles among private car users. You see a lot of new electric and hybrid vehicles as I assume sales have risen. “Sana all!” as they say as not everyone have the resources to purchase a new vehicle. There is an option, however, for those who might prefer their own transport (private) or are regular users of Transportation Network Vehicle Service (TNVS) as rideshares have been termed for some time now. Take the taxi. While there are still the conventional taxis, there are now also electric vehicle taxis. Leading the way for the electrification of taxis is the upstart Green GSM, which is a Vietnamese company using Vinfast electric cars that are also manufactured in Vietnam.

Electric taxi charging at a station at a residential building along Katipunan Avenue in Quezon City

Here are some preliminary data from an ongoing study at UP Diliman, comparing fares of Grab and Green GSM. The values shown are averages based on several simulated bookings for either for the same origin-destination. The peaks for Grab probably indicate the times when there are surge pricing for trips (i.e., peak periods).

Comparison of average fares of Grab Cars and Green GSM Taxis between 6:00AM and 10:00PM from Makati CBD to Ortigas CBD. (Source: ongoing research at UP, unpublished)

Comparison of average fares of Grab Cars and Green GSM Taxis between 6:00AM and 10:00PM from Makati CBD to Bonifacio Global City (BGC). (Source: ongoing research at UP, unpublished)

My colleague and I were on one of these taxis recently and we interviewed the driver. We learned that the company covers their charging expenses so they basically don’t worry about that cost. They also can take home their vehicles so that probably reduces garage concerns. But what caught our attention is that they also receive a regular salary and benefits due employees. On top of this are incentives based on how much they earn per day. I am curious about the business model for this company and if it is replicable for both electric and conventional taxis.

More on these electric taxis in future posts!

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