GrabTaxi - the mobile app for taxi drivers

When I first came across Grab Taxi in the Philippines, taxi drivers were using this popular app to book rides increasing their clientele base. For 40 pesos, you could book a taxi from your smartphone guaranteeing yourself a ride. I have always found the Grab drivers very polite and helpful, I couldn't say the same about Manila taxi drivers who were always trying to scam you.

On subsequent trips to the Philippines, Grab has expanded to private ride sharing utilising mostly part-time drivers. This has greatly expanded the reach of Grab and become a rival to Uber. I have never seen Uber operating in the Philippines; but since I have never supported this business, I have not sought them out either.

The first thing I noticed was the quality of the private vehicles that Grab offers, Manila cabs are pretty run down and the drivers take every opportunity to take advantage of a foreigner, the locals don't fare much better either. Grab has fixed rates that are very competitive, you are set the rate before departure so no chance to go the long way or driving in circles exists.

My preference is now Grab, I no longer have fights with taxi drivers unwilling to turn the meter on and quoting, I mean demanding outrageous fixed fares. Nor do I have drivers tell me it is too busy and they won't drive me to my destination citing heavy traffic. Taxis still get paid by the kilometer and have a charge for sitting in traffic so they don't lose. If Manila taxi drivers provided a better service then I would be happy to support them.

I refuse to use Uber in Perth because they have devestated the livelihoods of the taxi industry who were required to purchase highly expensive licenses from the state government to operate. The taxi board run by the state government limited taxi licences keeping prices high ensuring the inflation of taxi costs in a manner that only a government department could design.

These parameters defy the basic economic principles of supply and demand and they certainly don't create productivity increases or efficiencies. Grab on the other hand worked together with existing taxi drivers increasing their revenue and service so I am more than happy to support this business.