Competition vs cap: Why 19 platforms can’t fix Manila’s ride-hailing crisis

SPECIAL REPORT

First of two parts

Can’t book a ride? The fare is too high or the wait is too long? Not enough taxis on the road? The STAR looks into this complicated situation.

The rapid rise of ride-hailing services in the Philippines has become critical to daily urban mobility, filling gaps left by the Philippines’ chronically insufficient public transport system.

At present, Metro Manila’s ride-hailing market remains constrained with forcing 19 accredited platforms into fierce competition for a critically small pool of drivers and leaving commuters underserved.

This dependency has created sharp public tension, as new platform entry and sharp fare competition have failed to resolve the core issue of commuter scarcity, even as the Land Transportation Franchising and Regulatory Board’s formally accredited the full list of 19 platforms seeking a share of the constrained market.

The LTFRB’s full roster of certified transport network companies (TNC) now includes: PureRide Corp., UNLA LA Corp., Leggo Information Technology Solutions, Aztech Solution International Corp., Metrohills Transport Association Inc, Hail Transport Inc., Angkas Technologies, GoCab Corp., Unified Transport Operations League Corp, Peek Up Philippines Corp., Get Express Global Corp., Para Xpress Technology Services Inc., Taxsee Philippines Inc., RL Soft Corp., Joyride E-Commerce, Cloud Panda PH Inc., E-Pick Me Up Inc., Hirna Mobility Solutions Inc. and the market leader, Grab.

Supply gap widens

Despite the influx of new platforms, the volume of active transport network vehicle services (TNVS) has consistently failed to meet the LTFRB’s regulatory supply targets.

This persistent shortfall constitutes a critical regulatory discrepancy directly governed by policies restricting the sector’s operational cap.

Under Memorandum Circular 2018-005, the LTFRB established a common supply base of 65,000 TNVS units for Metro Manila and its surrounding provinces.

The supply base was created to respond to recurring commuter complaints of long wait times and unpredictable fares during high demand periods.

Available data from LTFRB resolutions show that only specific batches of this supply have been opened for application over the years.

The agency opened 7,870 TNVS slots in April 2022 and later released 10,300 additional slots under a 2023 board directive.

Despite these openings, the full 65,000-unit cap has not been activated, and the market continues to operate with a smaller pool of vehicles than originally envisioned by the regulator.

This slow activation is further highlighted by LTFRB actions in 2024 when the board postponed the rollout of 10,000 more TNVS slots after receiving objections from transport groups and local operators.

The gap between the capped supply and the activated units remains one of the most significant constraints in the sector which continues to shape competition and fare behavior even more platforms enter the market.

More platforms, limited relief

The market leader, Grab, maintains its dominance by operating a comprehensive platform that integrates ride-hailing, delivery and digital payment services.

The influx of accredited platforms forces intense competition, structurally reshaping commuter behavior by making passengers utilize multiple apps for the best rates and fastest service.

Din, a 23-year-old regular commuter, who uses multiple TNVS or ride-hailing apps, confirmed the impact of new platforms, “I tried the Green GSM car, it was really cheaper,” she said in an interview.

She added that she finds the ride-hailing app a necessity because it offers a continuous travel straight to the destination, compared to public transport which is a “hassle.”

Passenger behavior is now highly selective, as commuters check multiple apps for the best rates, driving fares to fluctuate sharply during peak hours and heavy rainfall.

Din, however, observed that competition fails during critical periods, “When it rains and I’m going far, no one accepts the booking.” she said.

In these situations, prices do not vary between platforms because they all increase their prices at the same time.

The entry of more operators has intensified driver competition, compelling each platform to aggressively recruit from a pool of accredited vehicles whose growth is strictly limited by regulatory caps.

Driver pressures

Even with more platforms available, drivers report that earnings remain heavily influenced by fuel costs, vehicle maintenance and daily traffic conditions —pressures which are supported by official inflation data.

The Philippine Statistics Authority (PSA) reported that national headline inflation in September 2025 stood at 1.7 percent, with the transport inflation index posting an annual increase of one percent, reflecting persistent cost pressures for mobility related expenses.

Transport inflation has shown volatility in regional releases, including year-on-year declines in some areas and increases in others.

This underscores the uneven cost environment drivers face depending on their operating zone.

For many drivers, multi-apping has become a standard practice, as they receive bookings from whichever platform offers more favorable pricing at a given moment.

Hazel Tiongson, a veteran driver and operator with more than 12 years in the ride-hailing industry, said using multiple apps is now essential for stable earnings.

Tiongson said that different platforms dominate different geographical zones. “Grab is only up to Laguna. When you reach Batangas, you won’t be able to book Grab. What you can get there is InDrive and Joyride (Car),” she said in an interview.

She said that while one app’s commission is high at 26 percent per booking, and another is low at 10 percent, this is offset by “very low” fares, meaning the driver will “lose money.”

However, she added that one app retains loyalty by providing benefits like cash loans, appliance loans and annual events to its drivers.

Beyond platform fees, she identifies the main struggle for drivers as dealing with enforcers, the Land Transportation Office, and other operators whose unit papers are illegal.

To be continued

Heaven Grace Peralta is a fourth-year BA Journalism student from the Polytechnic University of the Philippines. She produced this report as part of her internship at The STAR.