Highlights
- InDrive’s move to offer full earnings to drivers reflects its aggressive strategy
- The company's expansion and zero-commission policy could set new standards in the local ride-hailing industry.
Manila: In a bold move to challenge established players in the ride-hailing industry, InDrive announced that it will offer 100 per cent of ride earnings to its drivers in the Philippines.
This temporary zero-commission policy is part of the California-based company’s strategy to attract drivers and expand its market presence in the country, where competitors like Grab currently dominate.
Based in California, InDrive says it operates in more than 655 cities, with top performing countries include Mexico, Peru, Egypt, India, Ecuador and Pakistan. The Philippines' ride-hailing market is dominated by Grab, which has expanded its services to include food delivery and digital payments.
Zero-commission policy
InDrive is waiving its commission fees allowing its estimated 8,000 drivers to keep 100 per cent of their earnings from each ride.
This move significantly contrasts with other transport network vehicle services (TNVS) in the Philippines, which typically charge around 20 per cent commission.
Expansion plans
InDrive currently operates in key Philippine cities such as Metro Manila, Bacolod, Baguio, Iloilo, Butuan, and Cagayan de Oro, with plans to extend services to Cebu, Davao, and Pampanga.
The Philippines' ride-hailing market is dominated by Grab, which has expanded its services to include food delivery and digital payments.
InDrive has recently secured a licence from the Land Transportation Franchising and Regulatory Board (LTFRB) to operate in the Philippines.
Under the "Ka-gulong, Kita Tayo!" campaign, InDrive emphasises fair profit-sharing and community engagement, aiming to build a strong base of loyal drivers and passengers.
Impact
The ride-hailing market in the Philippines is on a growth trajectory, with revenue expected to reach $750 million by 2024 and $1.06 billion by 2029.
InDrive's zero-commission strategy could entice drivers to switch platforms, potentially disrupting Grab's dominant position in the market.
Disruptor
Natalia Makarenko, InDrive Marketing Director for Asia Pacific: “We still have zero percent commission and no immediate plans to collect a 10% commission. Our goal is to provide drivers with the best possible earnings to support their livelihoods.”
Jun de Leon, President of Laban TNVS said, “Panahon na po para kumita naman ang mga driver. Hindi dapat parang kabayo o kalabaw (It’s time for drivers to earn more without being treated like workhorses).”
“The current earnings of TNVS drivers are no longer sufficient.”
Local ride-hailing market is expected to grow at an annual rate of 7.16 per cent, with user numbers rising to 21.47 million by 2029.
Global comparison: China is expected to lead the global ride-hailing market with revenues reaching $59.56 billion in 2024.
By leveraging a community-focused approach and competitive incentives, InDrive's move could help it disrupt the Philippine ride-hailing scene.
