Uber expanding to Cebu, Davao

MANILA, Philippines - San Francisco based-technology company Uber is looking at expanding its car-hailing service coverage in key cities in the country following strong reception in its nine-month-old operations in Metro Manila.

In an interview with The STAR, Uber senior vice president for Europe, Middle East, Africa and Asia-Pacific Niall Wass said the company is studying possibilities of extending its presence in cities like Davao and Cebu.

“Business is growing really, really fast here. Manila is one of the fastest growing cities for Uber,” Wass said during his recent visit to the country.

Since entering the Philippine market in February this year, Uber has provided an alternative transportation scheme for Filipino commuters in Metro Manila.

Its services, however, still remains confined within Metro Manila only.

“We want to be everywhere in the Philippines. Uber wants to grow in every country, just as how we’ve grown in the US, India and China,” said Mike Bown, Uber regional general manager for Southeast Asia and Australia.

The Uber app is currently available in 216 cities in 45 countries around the world.

Brown said signups in cities across the country that currently do not have Uber is one key factor being considered by the company for potential expansion.

“Prior to the company’s launch in Manila, we had thousands of customers that had downloaded our app, signed up and even tried to request rides, so that’s one of the big indicators,” Brown said.

“The state of the existing public transportation network and infrastructure – safety, quality, availability, traffic and congestion levels, affordability – are all important considerations for us in choosing which cities we enter. Our goal is to be everywhere, in every city around theworld,” he added.

So far, the officials said Metro Manila’s acceptance for Uber have exceeded their expectations.

Laurence Cua, Uber Manila general manager, said among those who have tried Uber in the country, majority are coming back to use the service again.

“I think part of that is because of the type of service that we offer, as well the quality of our drivers and the cars,” Cua said.

On the average, Uber officials said waiting time for the vehicles in Metro Manila is currently between five to seven minutes.

Cua said the company’s goal is to reduce the customer’s waiting time further to about 3 1/2 minutes on the average through more vehicle and driver partners.

At present, Uber services cater to the middle and upper income segment of the market as the Uber app only accepts credit card payments.

Given that only about eight percent of the country’s population have credit cards, Wass said Uber is working on how to further expand its payment options.

Although cash has been taken out of the picture, Wass said payment with debit cards are being considered as a possibility.

Uber did not disclose any specific amount it intends to invest to beef up its operations in the country, but Brown assured that “the company and its services will continue to grow in the Philippines.”

In June this year, Uber managed to raise $1.2 billion from old and new investors. The amount was intended to fund its expansion in Asia, Latin America, Eastern Europe and Africa.