Grab expands electric taxi program to lower fleet costs

CEBU, Philippines — Grab is taking its electric taxi bet beyond Manila, targeting a potential 75 percent cut in running costs as it expands in Western Visayas,  a move that could make cheaper, cleaner vehicles increasingly attractive to the Philippines’ fragmented transport industry.

The ride-hailing company has partnered with Quarry Taxi and MOMOFED Taxi under its GrabTaxi Electric programme, opening its platform to locally operated electric taxi fleets in Iloilo City,

The economics are potentially compelling. Electric vehicles can cut operating costs per kilometre by as much as 75 percent compared with conventional internal-combustion taxis, based on daily travel of about 250 to 300km, according to Grab Philippines.

That cost advantage could become an important driver of fleet electrification in a sector where fuel is one of the largest recurring expenses for taxi operators and drivers.

“Electric mobility will succeed when it delivers real and lasting value to the communities that keep our cities moving,” said Gines Barot, GrabCar general manager.

Quarry Taxi, operated by Feast Group Inc., is the first operator in Western Visayas to introduce electric taxis and is among Grab’s pilot partners for fleet electrification in the region. It is deploying Bestune NAT vehicles for its operations.

MOMOFED Transport Group Corp., which operates MOMOFED Taxi, has also joined the program, initially deploying BYD eMAX 7 electric vehicles.

The two operators provide free charging for their electric fleets at their respective garages and depots, helping address one of the main barriers to wider EV adoption: the availability and cost of charging infrastructure.

Grab has separately partnered with EV charging provider ACMobility to offer participating drivers preferential rates of up to 45 per cent at its charging stations nationwide.

In Iloilo, charging is available at stations at Richmonde Hotel Iloilo, Robinsons Iloilo and Seda Atria through the Evro app.

The initiative also brings vehicle manufacturers deeper into the emerging electric taxi market. Toyota, BYD, GAC, MG and Geely are supplying models with the necessary regulatory approvals, alongside after-sales support, warranties, spare parts and priority maintenance for fleet operators.

For Grab, the strategy goes beyond emissions reduction. Electrification could help strengthen the economics of its driver and taxi-partner network at a time when fuel prices, maintenance expenses and vehicle ownership costs remain key pressures on transport operators.

The Iloilo expansion also provides a test of whether the economics of electric vehicles can translate into broader commercial adoption outside Metro Manila.

If lower running costs, charging access and fleet support can make EV taxis financially viable for provincial operators, the model could offer a pathway for faster electrification of the country’s fragmented taxi and public-transport sector.

The challenge, however, will be scaling the infrastructure and financing needed to support larger electric fleets while keeping the upfront cost of vehicles within reach of local operators. — (FREEMAN)