Published: Wednesday 18 April, 2018

New Transport Network HYPE Accredited by LTFRB: Can it Compete w/ Grab?

A new transport network company (TNC) is on the market – HYPE Transport Systems or, simply, HYPE. The Land Transportation Franchising and Regulatory Board (LTFRB) announced the accreditation of HYPE as a TNC on Wednesday afternoon.

Hype TNC accredited

Hype Transport Systems logo. (via ABS CBN News)

The entry of HYPE in the ride sharing market of the Philippines follows the exit of UBER, which was bought by Grab last month. No details about HYPE have been provided by the LTFRB yet and no HYPE app is yet available for download on iOS.

After the exit of Uber Philippines, riders have been complaining about increased fares, cancelled bookings or the lack of Grab rides especially during peak hours. This despite Grab’s promise that it would absorb all displaced Uber drivers into its network thus avoiding a shortage.

  Halalan 2019: Vic & Coney's Son, Vico Sotto, Files COC for Mayor of Pasig City

But, some observers point out that it may not be due to a shortage but the effects of a monopoly. With Grab capturing almost 100% of the market, competition and incentives dropped. Simply, drivers may not be as motivated as before when two big TNCs were competing against each other.

The LTFRB has previously said that several  TNCs would come in to pick up the slack left by Uber, and HYPE is one of them. But will HYPE and the other smaller start-up transport networks be able to really pick up the slack? Do they have the capability to compete against Grab?