Metro Manila (CNN Philippines, February 10) — Transportation authorities must loosen regulations to speed up the onboarding of thousands of transport network vehicle service (TNVS) units as demand for ride-hailing bookings has already climbed back to pre-pandemic levels, an official of Grab Philippines said.
“It doesn’t matter how many slots you give kung hindi mo papalitan yung [if you don’t change the] requirements,” Grab Philippines Senior Director for Operations Ronald Roda said during a roundtable discussion on Friday.
The Land Transportation Franchising and Regulatory Board (LTFRB) recently opened 100,000 more TNVS slots for Grab following its investment pledge to President Ferdinand Marcos Jr., which it said could create 500,000 jobs.
READ: LTFRB to give franchises to 100,000 Grab vehicles
Roda said the initial 100,000 slots could take “three years” to fill given the current requirements.
Even the 4,000 slots opened late 2022 have yet to be completed, he added.
Some of the requirements under the arduous process that operators need to secure include a certificate of conformity from the mortgage bank or financial institution if the unit is encumbered; proof of financial capability; and proof of publication.
Roda said Grab’s current driver supply plunged by 65% due to the pandemic. In Greater Manila — which also covers Rizal, Bulacan, Laguna, and Cavite — Grab’s network of cars dropped to less than 20,000. This has resulted in long waiting periods experienced late last year. In December 2022, during the peak of holiday rush, Grab already breached its pre-pandemic booking levels.
He said the company needs to at least have 65,000 cars in Greater Manila to address the rising demand this year.
The Grab executive also allayed fears of an oversupply, saying this is “highly unlikely” as even if the company gains 65,000 cars, only about 35,000 cars would be on the road at any given time.
“More supply just helps everyone… Fare is not an issue if you have a supply,” he noted.
Roda said Grab is also targeting to launch its ride-hailing service to more cities across the country, starting with Davao.
Sought for comment regarding Grab’s call on easing application processes, the LTFRB has yet to reply as of posting.
