Mobility services platform inDrive received its accreditation from the Land Transportation Franchising and Regulatory Board (LTFRB) to provide services in the Philippines, a move many hailed as providing much-needed competition in a space dominated by Grab Philippines.
Founded in 2012 by Arsen Tomsky, inDrive enables users to choose their preferred driver by considering factors such as driver rating, vehicle model, and estimated time of arrival. Simultaneously, drivers have the option to select passengers based on pick-up points, destinations, and fares.
With its roots established in Yakutsk, Russia, and now headquartered in California, inDrive has garnered recognition by empowering passengers to specify their desired fare and engage in negotiations with drivers. Subsequently, the application fosters a competitive environment among drivers, leading to more affordable rides for its users.
inDrive, which currently operates across over 600 cities in 47 countries, also boasts a low commission collection of 10% from their drivers (as opposed to 20-30% from other companies). Additionally, inDrive is set to initially activate its services in the Philippines in Bacolod, Baguio, Iloilo City, Cagayan de Oro, and Butuan.
inDrive’s entry into the Philippine market is only the latest in a series of shakeups changing the local ride hailing market.
Earlier this year, AirAsia parent company Capital A announced plans to enter the country and challenge Grab’s dominance. Slated to debut in the first quarter of 2024, airasia ride is known in its home base of Malaysia to offer rides at rates around 30% less than Grab.
The airasia ride service will be available inside the airasia Superapp, allowing users to book rides, flights, hotels, loyalty programs, and more under one platform. In other Southeast Asian countries, AirAsia has even begun testing out a new service called SureRIDE that promises faster pick ups by connecting users to drivers with the highest ride take-up and completion rates.
Additionally, the airasia ride team frequently highlights its mission to recognize the driver as the most important person in the business. Drivers with airasia ride receive a full salary, insurance, pension, and even access to low flight fares through the airasia Superapp.
Grab Philippines, meanwhile, has responded to increasing competition by diversifying its fleet and looking increasingly beyond Metro Manila.
In a media statement, Grab Philippines Country Head, Grace Vera Cruz, disclosed the company’s plans to onboard more electric vehicles in an effort to reduce the company’s overall carbon footprint. It also plans to extend its presence to popular tourist destinations in Visayas and Mindanao, intending to introduce 5,000-6,000 new Transport Network Vehicle Service (TNVS) slots in Cebu. An earlier press release this year emphasized Grab’s dedication to extending its ride-hailing services to strategic locations in Mindanao, with the goal of fostering economic activities and enhancing overall connectivity.
Recent innovations and new players entering the local ride-hailing market coincide with a challenging period for Grab Philippines, which is struggling to meet the high demand. The approval process for its holiday fleet has been delayed due to recent issues within the LTFRB, preventing Grab from activating the additional drivers meant to address a surge in demand of up to 45%.
Following the departure of its main competitor Uber from the entire Southeast Asia region, Grab Philippines distinctly solidified its position as the dominant force in the country’s ride-hailing sector. While Grab Philippines started out as an on-demand taxi service, it has since expanded its services and holds subsidiaries such as GrabFood, GrabMart, GrabExpress, GrabPay, and more.
However, the pending entry of both inDrive and airasia ride into the local ride-hailing market poses crucial questions around the future of the country’s transport industry. With both inDrive and AirAsia offering competitive prices and more generous driver compensation structures, it remains to be seen if Grab Philippines’ dominance will continue.
However, one thing is for sure—Filipinos stand to benefit from a wider range of transport options.