Finding it hard to book Grab? This is what’s going on

MANILA, Philippines — The dwindling of TNVS units in the metro has reached a new low. And without drastic measures, the situation for the modern commuter will only worsen and continue to be a frustrating experience. 

Despite this, 20-something Leif Sykioco, a corporate communications specialist based in Manila, attests to the convenience of using TNVS. “I choose it over public transport. Lalo ngayon, the mass transit system is a little chaotic. And ‘di ka sure e, if you’re going to use, for example, the MRT, may mga chance masira. Sa TNVS, walang ganyan e, that’s why I prefer it.” 

But when Uber pulled out of operations in Southeast Asia in March, Grab became the sole TNC servicing the TNVS-riding public in the metro. At the same time, stricter regulations from the Land Transportation Franchising and Regulatory Board (LTFRB) were imposed.

Fast forward to a couple of months later, we saw the arrival of new TNVS players, duly accredited by the LTFRB, in the hopes of increasing competition and levelling the playing field. 

With the advent of the new TNCs—amounting, so far, to five: MiCab, Hirna, Hype, Owto and Go Lag—commuters once again have options to get around the congested metro. 

“I tried Owto, I tried Hype and then ‘yung MiCab,” shares Jen Ambanta, a 28-year-old working in the communications field shares her experience.

Out of the three that she tried, Ambanta was only able to book with one app. The others she had to uninstall very quickly due to technical issues. 

Alas, even with the arrival of these new alternatives, they’re still rough around the edges. The limited TNVS supply has made it difficult for them to get drivers and start operations.

So what gives?

When Uber pulled out of operations in Southeast Asia in March, Grab became the sole TNC servicing the TNVS-riding public in the metro. At the same time, stricter regulations from the Land Transportation Franchising and Regulatory Board (LTFRB) were imposed. Philstar.com/File photo

In January, the LTFRB’s Memorandum Circular 2018-003 imposed a common supply limit for TNVS units at 45,000—merely a third of the 125,000 units operating with both Grab and Uber then. The imposition was later rectified in February when the limit was loosened and the common supply base was raised to 65,000 TNVS vehicles, of which 55,000 were registered in the official masterlist.

When Uber, Grab’s longtime rival, called it quits and left the Philippines in March, only 43,000 vehicles were left in the system. Following the acquisition, the transition of vehicles to Grab was rocky overall: 6,000 TNVS units could not transfer as they were not part of the LTFRB masterlist and about 2,000 had chosen to disengage due to personal reasons. 

As a result, the active vehicle base diminished to its current number of 35,000, falling short of meeting the demand of a staggering 600,000 daily bookings. And it gets even worse on rainy days. 

“Kaninang umaga, it was raining so hard. Nag-book ako starting 5:30, tapos magse-7 na wala pa rin akong nabu-book. Ang issue ko mostly is walang driver. Walang nag-a-accept ng ride. So kahit na ang lapit lang ng bahay namin sa work, less than 5 kilometers away, nahihirapan pa rin ako mag-book,” Sykioco explains. 

It is no secret that the ride-sharing industry relies heavily on their drivers. The number of Grab vehicles plying the streets is gravely wanting. This lack is a similar predicament for TNVS newcomers. Even with the plea to fill the cap of allowed drivers in Metro Manila, the volume of drivers to cater to bookings each moment is not a guarantee.

“I think dapat mas marami pa ring drivers—more drivers, more cars, more trips. Mas madali sa mga riders ‘yun,” Sykioco adds.

More to be done

Grab further implores the LTFRB to swiftly process additional slots and clean up its masterlist by removing inactive and dormant drivers. Philstar.com/File photo

Last August 17, the LTFRB announced its plan to finally open the 10,000 slots for TNVS units and will subsequently start accepting online applications from TVNS operators starting August 24 for processing of certificates of public convenience and provisional authority. This move is seen to fill the 65,000 common supply base that the agency set early in the year. 

READ: LTFRB to open 10,000 slots for TNVS franchises 

“We are thankful and grateful for this move of the LTFRB. It’s a step into the right direction. I think that they’ve come to understand [that] in ride-hailing, there needs to be some form of efficiency and balance between supply and demand,” says Leo Gonzales, head of public affairs for Grab Philippines, in an exclusive interview with Philstar.com. 

“Instead of 65,000, perhaps make it 80,000. If they make it 80,000, this will be a much closer number to what is ideal to address and to serve the demand on a daily basis,” he adds.

The new policy is also projected to address problems of slow bookings and higher fares caused by the lack of drivers—but only to a certain point. 

As such, Grab further implores the LTFRB to swiftly process additional slots and clean up its masterlist by removing inactive and dormant drivers. This request comes at a crucial time since the holiday season is nearing, and Filipino commuters on the road are expected to spike.

“We really hope that drivers who are active right now be included in the masterlist of the LTFRB, and replace the ones who are on the list but are dormant. They are the ones servicing the public but they stand to lose their ability to drive,” Gonzales says.

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