EV taxis expand as fuel costs climb

Hundreds of electric taxis operated by Filipino companies are now active on Grab’s platform, offering commuters a lower-cost and more sustainable transport option as fuel prices continue to rise.

Seven local operators—EV Taxi Corporation, EnviroCab, TaxiKo Transport Services, KateMikylla, CMAIII, ManilaTrans Taxi Corp., and Sun & Bin Transportation Corporation—have deployed hybrid and fully electric units under the GrabTaxi Electric service. The move comes at a time when conventional taxi operators are grappling with volatile fuel costs that are squeezing margins.

Data from the Department of Energy earlier showed sharp increases in pump prices, with diesel projected to rise by as much as P24.25 per liter and gasoline by up to P13 per liter in early March. For operators reliant on combustion engines, these increases translate directly into higher operating expenses.

Electric vehicles offer a different cost structure. Industry players estimate that EV taxis can run at 75 to 87 percent lower cost per kilometer compared to traditional units, giving operators more predictable expenses despite market fluctuations.

Beyond cost savings, the partnership with Grab provides steady demand. Operators said digital bookings now account for a significant share of daily trips, helping improve fleet utilization and reduce reliance on street-hail passengers.

The initiative also aligns with the Electric Vehicle Industry Development Act, which promotes the adoption of electric public utility vehicles and streamlines regulatory processes. Transport authorities have previously expressed support for accelerating the shift toward cleaner mobility solutions.

“When we invested in an all-electric fleet, the challenge was never the vehicle. It was the demand. Street-hail alone could not sustain the utilization rates we needed to make this business work. Activating on GrabTaxi Electric changed the equation. We now have a reliable stream of on-demand bookings that keep our units productive across the day. For a Filipino operator, that is the difference between an EV fleet that survives and the one that scales. We are proud that this is a partnership built on local operators and Filipino enterprise, not foreign capital,” said Eric Ke, Chief Mobility Strategist of EV Taxi Corp.

As fuel prices remain uncertain, operators are betting that electric fleets, backed by platform-based demand, can offer a more stable path forward for the taxi industry.