Ride-Hailing in Southeast Asia: Uber-Grab merger sparks new competition
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Grab's acquisition of Uber in Southeast Asia had many worried about a monopoly in the ride-sharing industry, but a slew of newcomers have entered the market since that March acquisition. CGTN's Barnaby Lo reports from Manila, where ride-sharing has become a solution to the city's inefficient public transportation system.
Alex Dulce used to thank the heavens for ride-sharing services like Uber and Grab. She says she's had enough of rude and abusive taxi drivers.
ALEX DULCE RIDE-SHARING COMMUTER "One time, the cab driver was falling asleep. We nearly got into an accident. So I told him that if he needed rest, he shouldn't be driving. He cursed and yelled at me."
Lately though Alex feels there's less to be thankful for.
ALEX DULCE RIDE-SHARING COMMUTER "Since Grab's the only service available now, I notice drivers have become more rude and inconsiderate. For instance, they'd call to cancel because your destination is out of their way."
BARNABY LO MANILA "It's no secret that the Philippines' public transportation system, specifically here in Metro Manila, is a mess. That's why ride-sharing services like Uber and Grab have grown in popularity over the years. But earlier this year those two companies merged, and that created a fear that there could be a monopoly. The government responded by allowing more ride-sharing services to enter the market."
It's the same all over Southeast Asia, where Grab has acquired Uber. New players are offering everything from lower fares to advanced bookings to safety features. Owto, a fully Filipino-owned company, promises premium service.
PAOLO LIBERTAD OWTO CHIEF OPERATING OFFICER "We wanna go back to the times when Uber was just starting here in the Philippines, when drivers made their riders feel like they're top priority when they're inside their cabin. It's something that we are focusing on – the overall customer experience."
It could be a long way before new ride-sharing companies get to where they can compete head-on with Grab though. Jerimie Tableza lasted only a few months with U-hop, a company owned partly by boxing icon Floyd Mayweather.
JERIMIE TABLEZA DRIVER "I couldn't get bookings because the app would show passengers that there were no drivers available even when I was actually nearby."
Jerimie is now with a company called Transportify, which uses the same technology that ride-sharing services use, but delivers goods instead. Guess what? He says he's making money. Barnaby Lo, CGTN, Manila