Grab wants add’l vehicles amid higher passenger demand

FILE: Grab Philippines (Photo: Grab/Facebook)

MANILA — Ridesharing firm Grab wants to add 8,000 to 10,000 more vehicles to its network to address the growing passenger demand.

The company is projecting that there was a 30-percent increase in demand since October this year, while the supply of its transport network vehicle services (TNVS) remain the same, according to Grab Philippines Country Head Brian Cu.

“The extra load of 30-percent growth in demand will be very hard to serve. What we are doing now is trying to improve our allocation methodologies and algorithms — the way the supply is set, providing incentives to our drivers to get them to drive a bit longer and to expand their opportunities for this holiday season,” Cu said in a press conference at Grab’s main office in Makati City Friday.

“The only thing we can do is to stretch our supply because we cannot add more supply,” he added.

Grab is not accepting new TNVS applications in compliance with the directive of the Land Transportation Franchising and Regulatory Board (LTFRB) last July for transportation network companies (TNCs) not to accept and activate new drivers into their systems, pending review of regulations governing the ridesharing industry.

Cu stressed that the TNCs should not be the ones to be blamed for the traffic jams being experienced in Metro Manila.

“Well, put it this way. We stopped adding cars in August. Has traffic got better or worse? Traffic has worsened. It’s not the TNCs or TNVS that are causing traffic,” Cu pointed out.

He said an average Grab ride is now taking around 45 minutes, up from 38 minutes six months ago.

Grab is advising passengers to adjust their travel schedules because of the expected heavy influx of vehicles for the Christmas season.

Riders may avail of the app’s carpooling feature Grab Share, wherein they can share rides with passengers traveling in the same direction and split on the payment of the fares.

“Grab Share is one of the features that we have to stretch supply because it allows passengers to share their rides. It will help stretch the existing supply base that we have,” Cu explained.

Grab currently has around 54,000 accredited TNVS nationwide. Of this number, 20,000 are full-time drivers.

Meanwhile, the Metropolitan Manila Development Authority (MMDA) said TNCs are not being blamed but these are among the contributing factors to the heavy traffic in Metro Manila.

“On the matter of Metro Manila traffic, we are not blaming them because there are other causes as well. However, they are contributing to the heavy vehicular volume, which is the top cause of the current traffic situation in Metro Manila,” MMDA spokesperson Celine Pialago said in a phone interview with the Philippine News Agency (PNA).

The MMDA expects an increase of 50,000 in vehicular volume, based on data gathered from car dealers.

Other causes of the traffic in the metropolis are the malls and bus terminals located along EDSA.

Around 4,022 stalled vehicles along the major thoroughfare were likewise recorded by the MMDA from January to August this year.

MMDA is urging TNCs to comply with the regulations that are being implemented by the LTFRB.

“We hope that the TNCs will be able to settle the matter with the LTFRB. They need to comply with the regulations. Whatever the decision of the LTFRB is, we will just enforce it,” said Pialago.

LTFRB is eyeing to create a common pool number that will manage the allocation of the TNVS of ridesharing firms to address passenger demand.

The board is also considering extending the validity of the TNCs’ franchises from one year to three years.  (PNA)