Uber’s new carpooling service drives Manila residents to work for less than $2

Photo credit: Uber

Uber today introduced its new carpooling service in the Philippines. Dubbed UberHop, the new option links up commuters who travel in the same direction.

Manila is the third city in the world to get UberHop, the company says. The service has been available in Seattle and Toronto since December 2015.

The Philippine capital is a good place for Uber to launch the service for several reasons. First, it’s one of the most congested cities in the world – transportation is a top-of-mind issue for residents. The Philippine government is also a pioneer in transportation regulation. It introduced a framework for Uber and similar companies to operate legally last year.

How it works

The new feature, Uber says, is ready to be used in Manila – but you need to upgrade to the newest app version. You can choose from a number of available pick-up and drop-off points, so it may not be an option if your route isn’t available yet.

If you’re among the lucky ones whose daily commute is on an existing route, you can request a car. The app will pair you up with a driver as well as up to five other riders. It will then direct you to the pick-up spot, which is supposed to be within walking distance.

The ride will bring you to your drop-off point without additional stops, but you may need to walk another couple of blocks to your final destination. It currently costs a flat fee of US$1.58 per person.

Uber says it piloted the service for a few weeks prior to the official launch today, presumably to figure out the best routes to start with. According to the transportation behemoth, its new carpooling option is one step along the way to its ultimate goal: make transportation better by “getting more people into fewer cars.”

Open playing field?

There’s another reason why now is the right time for Uber to bring its version of carpooling to the Philippines – the playing field just opened up. Competitor Tripda, a ride-sharing app by German startup factory Rocket Internet which launched in Manila in 2014, is apparently shutting down.

Facing competition from Uber: the team of local carpooling startup U-Hop.

Tripda’s shutdown could imply that demand for ridesharing simply isn’t high enough in Manila. But Uber is in a better position to prove that wrong. It has insanely deep pockets and presumably more user data to rely on from its other transportation services in Manila.

UberHop’s launch should worry a local startup coincidentally called U-Hop. It rose out of a traditional shuttle bus service for commuters, adding an on-demand app and more vehicle options. U-Hop’s main difference to Uber is that users pay a monthly membership fee instead of paying for individual rides. In November 2015, U-Hop won Tech in Asia’s startup pitch battle. At that time, it claimed to already serve 550,000 passengers.

Converted from Philippine Peso. Rate: US$1 = PHP 47.47