A generational opportunity for Philippine’s jeepney system

Every day, 100k+ smart people read our newsletter. You can sign up here.

Hello readers,

I typically shun tourist traps, but whenever I’m in Thailand, I undergo an unfortunate and strange transformation. On my last trip to Bangkok, I hopped on tuk-tuks to get to malls and cafes, haggled poorly for a cross-body bag in Chatuchak Market, posed for pictures in a husky cafe, and tested my limits with chilli padi-flecked dishes in the gentrified shopping district of Siam.

While many of these businesses thrive because of tourist traffic, it’s a slightly different story in the Philippines. The country’s 235,000 jeepneys – a popular form of public transportation in the country – are often used by locals, except the mode of transport is blanketed by a flawed system.

Today we look at:

• An ex-Grab exec’s bold plans to overhaul the Philippines’ jeepney system
• The launch of Carousell’s marketing platform
• Other newsy highlights such as Ant Group’s deal with Chinese regulators, Grab’s program to boost vaccine access, and fresh funds for a virtual voice agent developer

PREMIUM SUMMARY

This former Grab exec is fixing the Philippines’ jeepney troubles

The jeepney is a colorful, speedy fixture on Philippine roads, but these vehicles underscore a deeper problem in the country’s public transportation network.
Jeepneys are subject to the “boundary system”: Operators must apply for a franchise to ply certain routes, but the government limits the number of franchise operators per route. This set-up forces jeepney drivers to compete for passengers, leading to unsafe practices and unruly behavior. A new startup, however, has stepped in with plans to address this long-standing issue.

• The road to change: That startup is Byahe, and its CEO and co-founder is Brian Cu, the former country president of Grab Philippines. During his time with the ride-hailing firm, Cu successfully navigated the country’s thorny regulatory environment, leaving its rival Gojek in the (diesel-cloaked) dust.
• Rolling in the deep: In 2017, the Philippine government launched the Public Utility Vehicle Modernization Program (PUVMP) to encourage small operators to consolidate their franchises by forming corporations or cooperatives and to replace 15-year-old jeepneys with fuel-efficient ones. Alas, the PUVMP is offered as a bank loan, and only registered transport cooperatives or corporations are eligible for it. This leaves out many operators who are either unbanked or own only a single jeepney.
• Bold plans: Byahe’s vision, then, is to consolidate jeepney operators, creditors, jeepney manufacturers, the government, and commuters under one platform. The startup also plans to function as an operator and to offer an app to smoothen the experience for drivers and passengers. These plans would require regulatory approval, and Cu’s good standing and previous experience working with the country’s transport authorities should come in handy.

Read more: Ex-Grab Philippines head seizes a generational opportunity with new startup

STARTUP SPOTLIGHT

Carousell debuts a service marketing platform

Know your animals in the startup zoo