The Market Monitor Minding the Nation's Business
InDrive, a ride-hailing company with roots in Russia but based in California, is preparing to enter the Philippine market dominated by Grab Philippines after it sought to secure a franchise license.
Arsen Tomsky, InDrive CEO and founder, said they submitted their request to have transport network vehicle service (TNVS) slots before the Land Transportation, Franchising and Regulatory Board (LTFRB).
The ride-hailing firm hopes to get the green light by September so it can proceed with the commercial rollout before the year ends. Tomsky wants to service not only metropolitan areas but the regions as well where consumers are underserved.
He said their selling point as a ride-hailing app was their lower commission collection from driver-partners at below 10 percent compared to 20 percent to 30 percent for other companies. InDrive can provide cheaper fares for passengers.
Tomsky explained the company will be able to offer lower price because it is not spending on marketing. InDrive relies on “word-of-mouth” to acquire customers. The ride-hailing firm does not offer vouchers or discounts, he said.
InDrive conducted test launches in three cities, including Bacolod, last year but the LTFRB flagged it for operating without the requisite license. Tomsky said they stopped immediately following the notice.
During the testing period, the official said they found out there was “great interest” still for its services in the country.
The ride-hailing market in the four-wheel segment is mainly dominated by Grab after it acquired Uber’s business in 2018.