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The future of taxis in the Philippines?
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 (Source: ongoing research at UP, unpublished)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 (Source: ongoing research at UP, unpublished)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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Some thoughts on PUV modernization in the context of the energy crisis
One can help but recall a lot of things past during slow days like those on Holy Week. I was able to write about memories of spending the Holy Week in Iloilo during my younger days. I myself spent most of my Holy Weeks there until after College. My annual “recharging” was only interrupted when I was abroad for three years in the late 1990s. I don’t recall now the last time I was there for Holy Week but perhaps it was after I got married more than 20 years ago. The recollection this week was not only about the sentimental stuff of my childhood and teen days. I couldn’t help but recall some of the work we did many years ago on trying to modernize public utility vehicles, particularly jeepneys.
I was involved in some DOTC (what the DOTr was then) programs and projects about 15 years ago where we sought to replace the old conventional jeepney engines with newer models. This was to reduce emissions and improve fuel efficiency. Electric jeepneys then were still crude in terms of motors and batteries though the body designs were patterned after the conventional jeepneys. They were not as viable as the current models available now. There were also few designs of modern jitneys or minibuses at the time. And jeepney operators and drivers groups indicated their receptiveness to engine replacement. So it was logical to consider engine replacement at the time. Unfortunately, some groups strongly opposed this leaving nothing accomplished from the time.
Fast forward to the present and now, it seems it was correct to at least propose engine replacement at the time. Jeepney engines could have been more fuel efficient aside from having less emissions. Of course, it is now moot and academic and the current crisis might just result in jeepney operators and drivers giving up on their pasada. There is the opinion that jeepneys have been coddled and romanticized for quite some time now (since the 1970s?). It is perhaps time to phase out old vehicles in favor of modern ones. A message to progressive groups though: let’s learn from the lessons of this energy crisis and help with pushing for modernization of road-based public transport. If its the prices of the new models that pose as barriers then lets find ways for more acceptable and affordable financing schemes. Should there be a variant of service contracting by national and/or local government? Find solutions rather than find ways to inhibit or prevent modernization. Throwing obstacles has cost commuters a lot in terms of time and money. Commuters deserve a more modern and efficient transportation system.
Modern jitney in Cebu
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Some thoughts and reflections on transport and the Middle East crisis
Much has been said and written about the ongoing crisis brought about by the US and Israel attacking Iran and the latter retaliating. The prices of fuel have risen rapidly over the past weeks. Consequently, the prices of commodities have also risen. The Philippines is still very much dependent of fossil fuels for transportation with most travel using road-based transport. Even public transportation relies heavily on fossil fuels as buses and jeepneys are mostly using diesel engines. Even paratransit such as trikes and motorcycle taxis use gasoline.
While the energy mix in the country has become more diversified with renewables now having a substantial share, majority of power is produces using coal and natural gas. And so e-powered vehicles are also ultimately dependent on these fuels. Could we have had better transport that could have made our cities more resilient in light of the conflict in the Middle East? Probably, and if we followed and implemented the plans for mass transit systems that were laid out decades ago. Of course, this is already moot and academic given the current situation. The counterfactuals though point to better commuting conditions if projects have not been delayed or shelved.
A colleague and I were just discussing about how MRT 7 could have contributed to the reduction of car use along the Commonwealth Avenue corridor if it was completed according to the original schedule. That was 2019. Even with delays including the impact of the pandemic, it could have been completed a few years ago. If it was operational in 2023, commuters could have already shifted to rail from both private and public road-based transport modes. There was also actually a proposal for a Bus Rapid Transit (BRT) line along Commonwealth about 2 decades ago. That could have been constructed and operational ahead of Line 7 and could have already disrupted commuting preferences along the corridor if it were operated as a true BRT.
There’s just a lot of opportunities already missed that could have alleviated the fuel crisis we have now. Maybe we are really heading towards a bigger crisis when all these price increases lead to a more sweeping increase in the prices of commodities? We hope it doesn’t come to that but we seem to be helpless in this situation where we are caught unprepared for a war we are have nothing to do with.
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Green GSM spinoff?
Yesterday, we saw what looked like a Green GSM taxi in Antipolo. The color scheme was certainly the same and the vehicle was of the same Vietnam-made model (Vinfast).
The operator is Green Xentro. Xentro refers to the company operating a few small malls in Rizal and Marikina.
It’s probably related to Green GSM, which might be the mother company. This brings the taxi service closer to Rizal towns. I also have seen a few maintenance shops in Antipolo having a sign indicating they can service Vinfast vehicles. This is welcome if it means we ‘ll see more of these taxis around Rizal towns.
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Green GSM taxi first impressions
These past months, I have been alternately using Grab and In Drive vehicles for my commutes. If I had another choice, it would have been Green GSM taxi. I have used their taxis traveling between Quezon City Pasig City and within Quezon City. So far, it’s been a good experience including in terms of the fares I’ve paid. Green GSM boasts of an all electric vehicle fleet. They are also a big company compared to the current taxi operators in Metro Manila. I think what may be comparable in terms of fleet size would be the taxi companies in Cebu, Iloilo and Davao. The difference, however, is in terms of their business models. The usual taxis are still basically rental vehicles for the drivers. The latter pay the owners/operators a fee (i.e., boundary) and usually the drivers have to cover fuel and other operating and maintenance costs.
The Green GSM taxi drivers I’ve talked to say they receive a regular salary and have benefits very much like regular employees. They also had accredited stations where they can charge their vehicles or conduct maintenance such as change tires. You can also hail them on the street much like the conventional taxis. You don’t need an app to book a ride but it is more convenient to use their app. The limitation though is that currently you can only book a ride using their app for trips within Metro Manila. If you’re heading out like to Antipolo City, the app will display an error in terms of coverage area. If you happen to hail one of their taxis though, you can use them to go outside Metro Manila. I’ve seen them in Antipolo, Cainta and Taytay so I guess you can also hail them instead of being dependent on the app.
I have a couple of students whose research topic is on Green GSM Taxis characteristics. We’ll soon find out more of their operating characteristics and how their attributes compare with those of TNVS or ride-hailing services like Grab and In Drive.
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More electric vehicle taxis
I wrote about the new player in town, Green GSM Taxi, which has an all EV fleet. But while this is a relatively big company, there are smaller players who are also operating EV taxis. Here are a couple of them.
The last one, EV Taxi, is affiliated with Grab. The former doesn’t have sticker or anything identifying it with any of the app-based services. I haven’t seen many of both Xpress EV and EV Taxi so I assume there are fewer vehicles under the operator. This is much the same as previous conventional taxi operators and a consolidation of sorts is via one of the app-based companies like Grab. Is this (small operator) a sustainable venture? Is there anything new about these taxis aside from the vehicles being electric? Maybe the drivers are the same as before (for better or worse)?
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Still towards a car-oriented future?
Saw this photo being circulated on social media.
Again, there are many versions of this including the original from a town in Germany that compared 50 people on cars, a bus and on bicycles. The bottom line in the latest images (do these qualify as memes?) is that all these efforts in developing the car, whether regarding the engine or fuel, or perhaps autonomy or connectivity related, ends up being still car-oriented or car-centric. I
t doesn’t really solve our transport problems despite what is being packaged as environmentally friendly. The discussions about this is timely and relevant as electric and hybrid cars are now quickly replacing conventional ones. And there’s a kicker for those driving in Metro Manila, hybrid and electric vehicles are exempted from the travel demand management scheme that is number coding.
How do we veer away from this temptation from technology? How do we keep mode shares in favor of active and public transportation? How do we influence mode choice for the latter options?
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Traffic congestion along EDSA
I’ve taken some photos of EDSA traffic as well as the EDSA Carousel buses. Here are the more recent EDSA photos I took as I traveled from Makati to Quezon City after serving as a panelist in the Energy Transitions Dialogue last Wednesday.
I took this photo as we passed Guadalupe. I like this in the sense that it shows the clear ROW for the EDSA Carousel buses. One wonders why most of these motorists would prefer to drive their vehicles rather than take the bus or the MRT.
You can see in the photo that EDSA’s northbound side is clogged as far as the eye could see. If you check the image under the MRT bridge, it shows the southbound side was also congested. These photos were taken around 4 PM so this was still an hour before most people would be going home from work.
I mentioned in my comments at the panel that one consequence of giving number coding exemption to electric and hybrid vehicles is that this further diminishes the effectiveness (is it still effective?) of the MMDA’s number coding scheme. I don’t have the stats of how many EV’s and hybrids are registered and running in Metro Manila. Those numbers combined with actual counts will tell us how they are impacting traffic. That would be a nice topic for a paper. 🙂
The photos pretty much describe the transport situation in Metro Manila. Many of our major cities will be heading this way unless they improve their public transportation fast. If they do, then public transport mode share will be sustained if not increased. Metro Manila’s is already being eroded by inefficient public transport, motorcycles (including taxis) and perhaps unintentionally, electric and hybrid vehicles.
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E-trikes in Naga City
Just like other cities in the Philippines, Naga City now has electric tricycles operating and providing transport services. These are welcome developments for many cities and municipalities as these trikes are low emission and low noise vehicles. They also basically have higher passenger capacities compared to the conventional trikes though service characteristics may not be so different from the conventional trikes. For example, ‘special’ rides mean fewer passengers.
E-trike station at Plaza Rizal
E-trikes queued at the station
Despite the popularity, there are still many questions regarding e-trikes. These include durability, battery life and profitability. With the proliferation of e-trikes and their various models, these issues hope to be resolved in the next few years as more evidence relating to these and other issues come out.
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Electric taxis anyone?
Finally saw one of the taxis operated by Green GSM, which is a Vietnamese company. This is supposed to be the first all-electric taxi service in the Philippines.
My colleagues and I were talking about this. Among other topics is whether these taxis will not encounter problems once the rains pour and many streets are flooded. We also wondered whether these vehicles will add to the congestion; slugging it out with the established competitors.
Another, more deeper and serious topic is whether these are really clean. While these are emission free as far as the proverbial tailpipe is concerned, the sources of power are not necessarily so.
While we do have renewables in the mix including hydro, geothermal, solar and wind, much of our power used to produce electricity uses fossil fuels.
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Caught (up) in traffic 