September 4, 2024 | 12:00am
MANILA, Philippines — Ride-hailing app inDrive has gained momentum in expanding its Philippine network since its relaunch in June, almost doubling its driver fleet on the back of an industry-low commission rate.
inDrive yesterday said its driver count has gone up by 96 percent to more than 8,000 to date since resuming its operations in June.
Similarly, inDrive’s active users rose by 86 percent and bookings increased by 75 percent, driven by the steady demand for transport services in the metro.
If things go as planned, inDrive is expected to have a driver fleet of around 16,000 by the end of the year. Transport network vehicle service (TNVS) drivers are enticed to shift to inDrive on the promise of better income from lower commission costs.
Currently, inDrive collects zero commission from its drivers as part of its marketing to convince them to join the platform. It plans to charge a service fee of 10 percent soon, although no definite date has been set yet on when it would be imposed.
Likewise, inDrive marketing director for Asia and the Pacific Natalia Makarenko said the company aims to keep the same business model for the long term.
inDrive manages to earn despite the low commision rates, by spending less on marketing campaigns and keeping incentives to drivers and promos to passengers to a minimum.
Laban TNVS president Jun de Leon said his group backs inDrive in lowering commission rates to provide drivers with more income, scoring industry players that take as much as 23 percent.
He cited, for instance, a driver who earns a gross of P5,000 a day. De Leon said the driver could take home P500 more when working with inDrive, and that P500 could accumulate to as high as P15,000 in a month, enough to cover major expenses like bills and tuition.
As a whole, Laban TNVS is asking the Land Transportation Franchising and Regulatory Board (LTFRB) to regulate the commission rates that ride-hailing apps collect from drivers. The group proposes that service fees range from 10 to 13 percent only.
inDrive resumed its Philippine operations in June following its suspension in January, when the LTFRB found it liable for enabling price haggling within its app.
inDrive currently offers ride-hailing services in Metro Manila, Bacolod, Baguio, Iloilo, Butuan and Cagayan de Oro, and is keen on expanding in up to three more cities before year-end.
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