THE company behind taxi-hailing app GrabTaxi said it gives away P1.3 million through promotions in Cebu every day. Despite a competitor’s claim that its business model is short-term and unsustainable, a company official believes its investments in Metro Cebu will create loyal users in the long run.
“We’ve already tried and tested our promos in countries like Singapore and Malaysia for two years before. I am not afraid or in doubt of what we are doing,” Grabtaxi city manager for Cebu Raymond Dejan told Sun.Star Cebu when sought for reaction. Earlier, miCab co-founder Kenneth Baylosis described GrabTaxi’s model as short-term and unsustainable, adding that while the latter may have gained traction because of its promos, commuters will probably stop using the app once these offers end.
“We would not do this here if we had not been successful in other countries,” Dejan said.
MiCab is also a taxi-hailing app, but unlike GrabTaxi, which traces its roots to Malaysia, the former was conceptualized and developed in Cebu by Cebuanos. Last week, miCab announced it is also becoming an advertising platform; partner taxis are installed with LED signs that display advertisements. It charges a P10 booking fee, lower than GrabTaxi’s regular booking rate in Cebu at P25.
At present, GrabTaxi in Cebu has 2,000 partner-drivers and 48 taxi operators. Dejan said it covers half of the 4,000 total number of taxi drivers in Cebu today. On a daily basis, GrabTaxi Cebu registers 18,000 bookings, he added.
Dejan said that although it is predictable that the number of bookings will decline when promos are eliminated, he expects there will be a good number of loyal users who will remain.
“We are offering the promo because we want to share to them the GrabTaxi experience, that they are safe when they get in the taxi and they know who their driver is,” he said.
Dejan said Cebu is the most successful site for GrabTaxi in the Philippines in terms of the number of bookings and partner drivers.
GrabTaxi was officially launched here in July 2014. Downloads in Cebu for Android have already reached 101,000. Currently, the taxi-hailing service is also available in Metro Manila, Bacolod, Iloilo, and Davao.
Source: http://goo.gl/gV9OmY