Competition vs cap: Why 19 platforms can't fix Manila’s ride-hailing crisis

Can’t book a ride? The fare is too high or the wait is too long? Not enough taxis on the road? The STAR looks into this complicated situation.

- By HEAVEN GRACE PERALTA

The rapid rise of ride-hailing services in the Philippines has become critical to daily urban mobility, filling gaps left by the Philippines’ chronically insufficient public transport system.

At present, Metro Manila’s ride-hailing market remains constrained with forcing 19 accredited platforms into fierce competition for a critically small pool of drivers and leaving commuters underserved.

This dependency has created sharp public tension, as new platform entry and sharp fare competition have failed to resolve the core issue of commuter scarcity, even as the Land Transportation Franchising and Regulatory Board’s formally accredited the full list of 19 platforms seeking a share of the constrained market.

The LTFRB’s full roster of certified transport network companies (TNC) now includes: PureRide Corp., UNLA LA Corp., Leggo Information Technology Solutions, Aztech Solution International Corp., Metrohills Transport Association Inc, Hail Transport Inc., Angkas Technologies, GoCab Corp., United Transport Operations League Corp, Peek Up Philippines Corp., Get Express Global Corp., Para Xpress Technology Services Inc., Taxsee Philippines Inc., RL Soft Corp., Joyride E-Commerce, Cloud Panda PH Inc., E-Pick Me Up Inc., Hirna Mobility Solutions Inc. and the market leader, Grab.

Supply gap widens

Despite the influx of new platforms, the volume of active transport network vehicle services (TNVS) has consistently failed to meet the LTFRB’s regulatory supply targets.

This persistent shortfall constitutes a critical regulatory discrepancy directly governed by policies restricting the sector’s operational cap.

Under Memorandum Circular 2018-005, the LTFRB established a common supply base of 65,000 TNVS units for Metro Manila and its surrounding provinces.