Shared Mobility in Asian Megacities: The Rise of the Apps

Abstract

In August 2015, the Philippines became the first country in Asia to legalize app-based shared mobility services by defining a framework for “Transport Network Companies” (TNCs). With the country’s long history of shared transport, the underlying concept was already culturally ingrained. However, given that only around 31% of Filipinos have bank accounts, with an estimated 4% access to credit card, and smart phone penetration around 21%, the current market for TNC services is limited to a small segment of the population, compared to the overall shared transport market. While it remains unclear whether TNC services will add to congestion by helping to spur some suppressed demand trips, or ultimately reduce car ownership by providing an alternative shared model, the quick uptake and growth of the TNC services also show that they are improving the overall mobility of certain population segments. However, the services remain out of reach for the majority of the population and add to mobility inequality. Both issues traffic congestion and inequality of access reflect the discussion in the developed countries, but are magnified by the extreme growth rates of cities like Manila, Jakarta, and Bangkok, where the future of those services will likely be shaped and decided by daily practice far ahead of the West.