inDrive makes U-turn to Philippines to challenge Grab

MANILA, Philippines — Ride-hailing giant inDrive has received regulatory approval to return to the Philippines, enticing drivers to join the platform by initially charging them zero commission.

inDrive yesterday announced the resumption of its ride-hailing operations in the Philippines after securing clearance from the Land Transportation Franchising and Regulatory Board (LTFRB).

This time, inDrive is confident it will retain its license to operate in the country, and is out to attract drivers to join the platform to earn more income.

inDrive business development manager for Southeast Asia Afansiy Petrov said the company would charge its drivers zero percent service fee for at least two months. Afterward, inDrive will begin collecting a service fee of 10 percent for all transactions.

Still, the rate remains lower than what the leading ride-hailing players are taking from their drivers. Laban TNVS president Jun de Leon said other operators in the business charge as much as 23 percent in service fee, leaving drivers wanting more.

Currently, inDrive offers ride-hailing transport in Metro Manila, Bacolod, Baguio, Iloilo, Butuan and Cagayan de Oro, and plans to bring its presence to Cebu, Davao and Pampanga.

Petrov said inDrive maintains a fleet of a few thousands of drivers in the areas it covers, but eyes to grow as soon as new slots for transport network vehicle service (TNVS) are opened.

In the future, the goal of the ride-hailing giant is to bring in its other services into the Philippines, such as courier delivery, intercity drive and cargo transport.

However, Petrov said inDrive has removed one of its unique features to get its license back. In its reactivation, inDrive will no longer allow passengers and drivers to negotiate fares, a feature that was previously available in its launch.

To recall, LTFRB suspended inDrive from operating in the ride-hailing market for enabling price haggling in its platform. The agency said such a feature jeopardizes both passengers and drivers, as it breaches the principle of transparency that transport firms must uphold.

In its return to the Philippine market, inDrive signed a partnership with Laban TNVS to provide the ride-hailing app with a steady supply of drivers and to embark on joint marketing activities.

inDrive is one of the biggest ride-hailing platforms in the world, completing around three million rides a day in 2022 and is the most downloaded transport app next to Uber.