Hidden cost pressures are quietly reshaping Manila’s ride-hailing industry

Amid volatile fuel prices and worsening traffic congestion, many drivers in Metro Manila say the biggest challenge in ride-hailing today is no longer simply finding passengers, but figuring out how to keep operating profitably in an increasingly pressured market.

An increasing number of drivers and transport operators in Metro Manila say maintaining gasoline-powered vehicles for transport services is becoming significantly more difficult amid prolonged congestion, volatile fuel prices and shrinking profit margins.

The Philippines remains one of Southeast Asia’s most oil-import-dependent economies, making the transport sector particularly vulnerable to fluctuations in global energy prices.

According to data from the Philippine Statistics Authority (PSA), transportation costs have consistently ranked among the major contributors to inflation, particularly during periods of sharp fuel price increases.

Unlike traditional taxi fleets, the Philippine ride-hailing market depends heavily on privately operated gasoline vehicles.

“When operating costs become unstable, the driver becomes the shock absorber of the system,” said Rene E. Santiago, a Philippine transport economist and infrastructure consultant.

“That becomes even more difficult in cities where congestion already reduces operational efficiency.”

According to Japan International Cooperation Agency (JICA), traffic congestion in the Philippine capital has historically cost the economy billions of pesos per day through lost productivity and transport inefficiencies.

“There are days when I spend almost half my shift barely moving in traffic,” said Paolo, an app-based driver in Quezon City. “Fuel keeps getting consumed, but the number of completed trips goes down. That’s why many drivers are starting to think more seriously about operating costs.”

Several transport companies are introducing leasing programs and centralized EV fleet models designed to lower fuel and maintenance costs for drivers over time.

Among them is Green GSM, which recently entered the Philippine market with a fully electric ride-hailing platform.

The emergence of EV fleets reflects a broader shift in how parts of the transport sector are beginning to think about operational sustainability.