Manila is swiftly establishing itself as a prominent global tech hub, ranking in the 81-90 percentile in Startup Genome’s 2024 Global Startup Ecosystem Ranking. With over 1,100 startups now operating in the Philippines, the country is laying the groundwork for a robust tech ecosystem. This growth necessitates a focus on transparency and adaptability for international businesses entering the market, as emphasized by Afanassi Petrov, Business Development Manager for Southeast Asia at inDrive, during a recent address to global startups considering expansion into the Philippines.
Petrov, who previously spearheaded inDrive’s expansion into Pakistan, underscored the Philippines’ vibrant and diverse market, particularly the increasing demand for enhanced transportation solutions. The company’s decision to enter the market was guided by comprehensive research into local passenger preferences, competitive dynamics, infrastructure, regulatory considerations, and cultural factors.
A Community-Centric Strategy
Prior to its full-scale launch, inDrive engaged local communities to assess interest and ensure alignment with Filipino needs. “We saw considerable interest from local communities, especially among drivers,” Petrov remarked. This favorable response solidified inDrive’s choice to obtain the necessary licenses and commence operations in the country.
Since its relaunch in June, transparency has been integral to inDrive’s strategy. The company collaborated with the transportation advocacy group Laban TNVS to address driver concerns and implement sustainable solutions. In a show of commitment, inDrive provided free services to partner drivers for the initial two to six months of operation, planning to introduce a competitive 10% service fee afterward—well below the industry standard.
Additionally, inDrive has teamed up with Toyota Quezon Avenue and RideSecure Car Care Center to enhance road safety for its drivers, offering benefits like complimentary 21-point vehicle inspections, special maintenance packages, and comprehensive insurance coverage.
Remarkable Growth Post-Relaunch
Since its relaunch, inDrive has experienced substantial growth, reporting a 75% increase in rides. The platform also noted an 86% rise in active users and a 96% growth in its driver base.
Petrov highlighted the importance of staying abreast of industry trends, particularly for startups in tech and ride-hailing. Innovations such as artificial intelligence (AI) and electric vehicles (EVs) are gaining traction, with discussions surrounding their implementation intensifying in the Philippines.
inDrive is currently harnessing AI within its pricing algorithms, optimizing fares based on real-time variables like driver availability, passenger demand, and weather conditions. The company is also exploring the introduction of EV fleets, building on successful implementations in markets like India, Pakistan, Indonesia, and Thailand.
“We’re closely monitoring the local automotive industry. If we witness significant growth in EV adoption, we’ll onboard EV drivers and explore avenues to support them,” Petrov stated.
Emphasizing Compliance
Petrov stressed that adherence to local regulations is crucial for establishing trust with stakeholders and ensuring long-term success. “Compliance is essential for doing business in this country… It fosters trust between you and your stakeholders. I strongly recommend starting with thorough research on the regulatory landscape,” he advised.
In conclusion, Petrov highlighted that transparency, compliance, and strong stakeholder relationships are vital for success in the evolving tech landscape of the Philippines. As evidenced by inDrive, startups that prioritize these principles can effectively navigate the challenges of expansion and thrive in the dynamic ecosystem.
For more information on inDrive’s growth and service updates in the Philippines, visit www.inDrive.com.
