Every day, more than 68,000 motorcycle taxi riders and 370,000 commuters are out on the streets thru ride hailing apps and transport networking services. Technically, they are still prohibited by law, but in 2019, Congress gave the green light for motorcycle taxis to serve commuters under a pilot study program, to determine if they are safe for public transport.
That study, completed in five years, was entitled “Motorcycle Taxis in the Philippines: A Comprehensive Analysis for Permanent Integration”, and subsequently, the Technical Working Group (TWG) of the Land Transportation Franchising and Regulation Board (LTFRB) recommended to Congress the integration of motorcycle taxis as a safe and viable means of public transportation. It also said that these “have the potential to alleviate traffic congestion by reducing the number of vehicles on the road, thus improving traffic flow.”
Recent research also confirmed that this relatively new industry, led particularly by GrabPH already plays a pivotal role in driving economic growth, creating livelihood opportunities, and significantly contributing to the national GDP.
I am referring to a study of the University of Asia and the Pacific (UAP-CRC ) titled ‘The Impact of Ride-Hailing and On-Demand Delivery Services on the Philippine Economy: A Focus on Grab Philippines’, which confirms Grab’s economic influence and its unique ability to amplify economic returns , particularly their operations in 100 cities nationwide.
Dr. Cid L. Terosa, UA&P Associate Professor, Senior Economist and Input-Output Analysis Specialist, says “Grab – with its strong foothold in the Philippines, its technology, portfolio of services, and robust ecosystem of partners and merchants, has a remarkable capacity to propel our economy forward. Having the unique position as a superapp has allowed Grab to fully realize a multiplier effect that reverberates throughout the economy and the Filipino household”
It affirms the positive impact of ride-hailing apps and transport networking services (e.g. 4-wheel/2-wheels, food delivery, etc.) that for every peso spent on these services, 3.42 pesos more are generated within the economy. This multiplier effect is manifested thru more self-employment & entrepreneurial activities (drivers, merchants), direct & indirect employment of allied businesses (fuel services, vehicle manufacturing, advertising, packaging, etc), and higher disposable income/consumer spending of families within the TNVS industry.
This multiplier effect surpasses industry benchmarks — positioning Grab as a leader in economic contribution within the transportation sector. The fundamental idea is that with a hypothetical P100-GrabCar ride, an additional P342 is generated for the economy.
With this multiplier, Grab ranks third among seven transport sectors next to railway and air transport. Moreover, compared with available multiplier studies published in local economics journals, this multiplier significantly outpaces heavy industries like mining, highlighting Grab’s unique and substantial economic contributions.
Also, the household income multiplier of 0.44 suggests that every additional peso spent on Grab’s services stimulates an increase of P0.44 in the national household income. This implies that an extra peso spent on Grab services extends beyond just covering the actual ride or meal – it contributes an additional 44 centavos to household incomes for laborers in the ride-hailing and on-demand delivery industry nationwide.
Grab’s operations also played a vital role in reducing the average number of unemployed persons by 1.1 percent to 1.6 percent from 2019 to 2021. In a recent visit by Grab leaders in Malacañang, President Bongbong Marcos personally welcomed the considerable contribution of the superapp to the country’s employment rate. These findings strategically align with Grab Philippines’ commitment to the Marcos administration of creating 500,000 livelihood opportunities – laddering up to the administration’s thrust on job creation.
Grab Philippines Country Head Grace Vera Cruz states “Grab remains firm and focused on its commitment to being an active partner of the government in their growth and development agenda – and we are humbled to see this solidified in concrete economic outcomes. We understand that much work needs to be done in further driving the nation forward, and we are eager and prepared to help usher in a new phase of inclusive growth and prosperity – with the support of our partners in the government and public sector, and our regulators.”
Dr. Thomas Aquino, Senior Fellow at the UA&P-CRC, says this study showcases how expansive the positive impact of online marketplaces like Grab has on national and local economies, promoting a more balanced regional development. We are very optimistic that with the fast-growing adoption of digital-first ways of life, platforms like Grab will continue to be key economic drivers as they transform the lives of many Filipinos for the better,”.
Therefore. Th legislative road is now clear on the immediate enactment of a new law about Transport Network vehicles (TNVs). And Congress should now do their job to provide clarity of government policies and regulations to this new industry. In fact, the delay is hindering expansion of TNV operations all around the country.
And quite sadly, the proposed bill moves at a very slow pace in Congress and most likely, insiders say, approval will happen the end of next year 2025 and not in the next six months of this year. At the latest, the proposed bill is still on second reading at the House of Representatives, while a counterpart bill in the Senate remains at the committee level, under a new leader, Sen. Raffy Tulfo replacing Sen. Grace Poe, who bowed out because of the recent Senate revamp.
It is indeed ironic that while people have been using these TNVs and motorcycle taxis now as a safe commute and its investors pump priming the economy, this industry is still not fully protected by law. Politicians still cannot decide on a new law to govern it. How long will the commuting public , the drivers and their families , wait before our senators and congressmen enact a TNVs Law? This is one law they should prioritize.
People are already sick and tired of their hidden agendas, political back scratching , favoring their campaign donors ,and their ‘getting reelected” mindset.
Sirs, it’s time to serve your real masters, the people!