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Increasing the number of TNVS units? Not so fast!

The Land Transportation Franchising and Regulatory Board (LTFRB) is planning to increase the number of TNVS units (i.e., rideshare vehicles) in Metro Manila to meet what is perceived as the demand for them based on the numbers provided by TNCs like Grab. The problem with this number they want to eventually achieve, 65,000 units supposedly, is that this is based on current transport conditions in the metropolis. Also, this is based on data that is biased for the interests of TNCs, which obviously want to increase their driver and vehicle base in order to maximise profits. Here is a nice article that should provide some context from abroad where rideshare vehicles are actually generating more car traffic and taking people away from public transport.

Fried, B. (2018) “Uber and Lyft Are Overwhelming Urban Streets, and Cities Need to Act Fast,” Streetsblog, https://nyc.streetsblog.org/2018/07/25/uber-and-lyft-are-overwhelming-urban-streets-and-cities-need-to-act-fast/ [Last accessed: 7/26/2018]

Currently under construction are the Line 7 and Line 2 Extension projects and soon there will also be the Line 1 Extension. Also, in the pipeline are the proposed subway and rehabilitation of PNR that is supposed to revitalise its commuter line. These are examples of projects that will likely be game changers in terms of commuting with the objective of drawing people away from car use. In the bigger scheme of things, perhaps there is a need to rethink numbers for TNVS and instead focus on improving taxi services in Metro Manila. The same can be said for other cities as well where there is already a need for better public transport services to avert a transport future similar to what Metro Manila is already experiencing now.

On the continuing evolution of Uber and Lyft, and some thoughts on TNCs in the Philippines

Here’s a nice read about ridesharing/ridehailing/ridesourcing in the US:

Madrigal, A.C. (2018) “Will Uber and Lyft Become Different Things?”, medium.com, https://medium.com/the-atlantic/will-uber-and-lyft-become-different-things-2d0442472a15 [Last accessed: 6/13/2018].

It seems that companies like Uber and Lyft are evolving and that should benefit commuters. Meanwhile, the latest news on TNCs in the Philippines is on the issuance of a Department Order by the Department of Transportation (DOTr). The new Department Order (DO) effectively amends and supersedes an earlier DO issued in 2015 (DO No. 2015-011), wherein TNCs were allowed to set their own fares, subject only to oversight by the Land Transportation Franchising and Regulatory Board (LTFRB). This means more regulations for TNCs that might actually harm the new players more than the remaining big player – Grab.

Uber recently sold its Philippine operations to Grab in exchange for shares of Grab. One colleague quipped “If you can’t beat ’em, join ’em!” And that seems to be the case here where Uber’s vulnerability was exposed when faced with a strong competitor together with a government bent on having a firm regulatory control of TNC operations. While I am for regulations in order to protect both the interests of commuters as well as the drivers-operators of TNCs, I believe too much regulations will weaken this mode while taxi services remain wanting (to use a kinder term). The DOTr and the LTFRB is again not addressing the root cause of a problem on taxi-type services and allowing generally poor services among taxi companies in Metro Manila to continue.

On the Grab – Uber merger

A couple of weeks ago, I received a message from Uber confirming what was in the news for some time then, and what was rumoured a longer while back. Uber Philippines was closing shop after merging with main competitor Grab, while the mother company also acquiring a stake in Grab. Later, I also received a message from Grab (I use either depending on availability and cost.) welcoming Uber users to Grab.

The result so far has been frustrating if not disappointing to many who have relied on Uber for commuting and the typical trips that you usually associate with taking a taxi.

Recent news revealed that Grab is using an even more punitive pricing scheme compared to Uber’s surge pricing. While the LTFRB moved to scrap this, Grab has been apprehensive, stating that this was an incentive for their drivers. There is actually another side to the concept of surge pricing that LTFRB does not or seems to refuse to understand. That is, that dynamic and more expensive fares related to congestion (or road conditions) is something that’s actually related to the concept of congestion pricing. This actually penalises the use of vehicles like private cars or taxis in favour of higher capacity transport like buses or, if available, trains.

Even more recent is the news that Grab is suspending about 500 of its drivers for excessive cancellation and/or rejection of trips. Unlike Uber before, Grab drivers have the “luxury” of knowing where a potential passenger is heading. That gives the driver the option to accept or reject a proposed fare. Uber drivers didn’t know where the potential passenger was heading and to my knowledge, was stricter with penalising their drivers. The only caveat I know is that passengers can also be penalised if the driver requests for a cancellation and the passenger obliges out of good faith (e.g., An Uber driver in Cebu requested me to cancel the request as he claimed he was caught in traffic and would be penalised if he canceled. I ended up protesting Uber penalising me 100 pesos for my cancellation. Uber did not act on it in my favour.).

The issues surrounding the Grab/Uber merger though should not be there in the first place if we had good taxi services. When I say good I am referring to the quality of service provided by taxis in Singapore and Japan. Of course, they also have good public transportation there so there’s also a case for what most people will likely be taking instead of cars and taxis (which operate similarly as cars). One wonders how and why LTFRB seems to be so strict vs TNCs while being lax with taxis. Meanwhile, DOTr is scrambling on the desperate catch-up work it has to do about mass transit lines and public transport rationalisation. Good luck to us commuters!

On the negative social impacts of ridesharing/ridesourcing

I have shared a few articles before about the impacts of ridesharing/ridesourcing to taxi drivers. In the Philippines, taxis where ridesharing/ridesourcing services are available are plenty are supposed to have experienced a significant drop in their business. Yet, there has been little improvement in taxi services in Metro Manila. The Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) have not put pressure on taxis to improve so operators and drivers are pretty much the same in terms of practices and service quality. Here is a recent article that appeared on Wired about New York taxi drivers:

Katz, M. (2018) “Why are New York taxi drivers killing themselves?”, wired.com, https://www.wired.com/story/why-are-new-york-taxi-drivers-committing-suicide/?CNDID=37243643&mbid=nl_032918_daily_list1_p4 (Last accessed 3/30/2018).

Admittedly, the set-up for New York taxis is quite different from those in the Philippines. The medallions referred to in the article are limited and carries with it prestige and perhaps honour, considering the commitment and pride attached to them. Franchises in the Philippines are quite different and drivers will usually work for multiple operators/employers. Those who own their taxis are not so many and can be flexible in the way they conduct their business. Perhaps a significant number of drivers have even left the taxi business and now drive for TNCs like Grab and Uber.

With Uber’s sale of their business in Southeast Asia to main rival Grab, it seems now that there is suddenly and practically a monopoly of the ridesharing/ridesourcing business. Upstarts have not had a significant share of the market and by all indications will not get a bigger share in the near future. I still think that there should be pressure for taxi services to be improved and a good chance for people to shift back to taxis. But this requires effort on both sides (regulator and operator). I still mention examples of taxi operators in Cebu and Iloilo who appear to be unscathed by the entry of ridesharing/ridesourcing in those cities. Good quality taxi services will promote itself and will be patronised by commuters.

On the other uses of ridesharing/ ridehailing services

We start 2018 with another article that I found this interesting. The article is on the other uses of ridesharing, particularly for medical emergencies:

Seipel, T. (2017) “Uber reduces ambulance usage across the country, study says”. mercurynews.com. https://www.mercurynews.com/2017/12/13/uber-reduces-ambulance-useage-in-major-u-s-cities-study-says/ (Last accessed: 12/22/2017).

This article was particularly interesting to me because we are currently doing research on ridesharing. This should be a good topic for students who are looking for something current and relevant, and should fit well in the bigger scheme of things in as far as our research agenda is concerned. There is a link to the study report in the article for those wanting to get the details on the outcomes.

Origins of ridesharing/ride-hailing?

Here is a very interesting article on the beginning of Uber:

Campbell, G. (2017) The Beginning of Uber,” Medium, August 23, 2017, https://medium.com/@gc/the-beginning-of-uber-7fb17e544851 (Last accessed 11/10/2017).

The article contains the company’s first pitch and should be of interest to researchers (that includes my students) who may want to know about and from the Uber’s origins. It might be useful to taxi operators and drivers as well since the slides show their characterization and what (good) features distinguished Uber from the conventional taxis at the time.

New study on ride-hailing

Here’s a nice article that has a link to a study conducted at the University of California-Davis written by one of the authors of the study:

Clewlow, R.R. (2017) “New Research on How Ride-Hailing Impacts Travel Behavior” in Planetizen, October 11, 2017.

And here’s an article about that same study:

Bliss, L. (2017) “The Ride-Hailing Effect: More Cars, More Trips, More Miles ” in Citylab, October 12, 2017.

As usual, I am posting this for reference not just for my readers but for myself and my students who are currently doing research on ridesharing/ride-hailing in the Philippines.