As the Philippines rapidly emerges as a growing hub for tech startups, the role of transparency and compliance has become more critical than ever. This was the core message from inDrive’s Business Development Manager for Southeast Asia, Afanassi Petrov, during the Echelon Philippines 2024 panel discussion.
The Philippines: A Growing Tech Hub
Manila has gained global attention for its vibrant tech ecosystem, landing in the 81-90 percentile of Startup Genome’s 2024 Global Startup Ecosystem Ranking. Home to over 1,100 startups, the Philippines presents significant opportunities for tech-driven businesses looking to expand their operations.
Petrov highlighted how transparency is fundamental when launching and scaling an international business in the Philippines. He advised startups to maintain openness in dealings and build trust with local stakeholders, as these relationships are pivotal for long-term success.
inDrive’s Transparent Business Model
inDrive, founded in Yakutsk in 2013, built its business on transparency. Initially responding to unfair fare hikes during harsh winters, inDrive’s model avoids using algorithms to determine prices, opting instead for a peer-to-peer pricing model. This allows both passengers and drivers to agree on fair ride prices.
“The freedom for passengers and drivers to choose prices themselves is what sets inDrive apart in the region,” Petrov shared. Moreover, inDrive prioritizes safety by offering passengers the choice of drivers based on ratings, car models, and driving history. Drivers, too, have the ability to select passengers based on profiles, ensuring a secure and seamless ride experience.
inDrive’s Expansion in the Philippines
inDrive’s entry into the Philippine market came after thorough market research. Petrov emphasized the need to understand local cultural nuances, government regulations, and the competitive landscape before launching. inDrive’s research affirmed a strong demand for more transportation options, leading to its partnership with local communities and securing necessary licenses for operation.
Since its relaunch in June 2024, inDrive has seen significant growth in the Philippines, with a 75% increase in rides and nearly doubling the number of active users and drivers.
Partnering with Local Stakeholders
To further its commitment to transparency and building strong local relationships, inDrive partnered with the transportation group Laban TNVS to address the concerns of partner drivers. Additionally, the app teamed up with Toyota Quezon Avenue and RideSecure Car Care Center to provide free check-ups and maintenance benefits, ensuring safer rides for drivers.
inDrive has also been providing its services free of charge to drivers for the first two to six months of operations. Afterward, a 10% service charge— the lowest in the local market— will be implemented.
Staying Ahead of the Curb
inDrive also stressed the importance of staying ahead of industry trends. In the tech and ride-hailing sectors, discussions about artificial intelligence (AI) and electric vehicles (EVs) are gaining momentum. inDrive has already integrated AI into its pricing features and is exploring the potential for electric vehicles in the Philippines. The company’s EV fleets are already active in other countries like India and Indonesia, and it’s only a matter of time before they reach the Philippines.
Compliance as a Key to Success
Petrov concluded by advising startups to fully comply with government regulations to foster trust with local stakeholders. “Compliance is an essential part of your business in the country… It’s a way to build trust between you and other stakeholders,” he noted.
As inDrive has shown, transparency, compliance, and community engagement are crucial elements for startups looking to expand in the dynamic Philippine market.
For more updates on inDrive’s operations and expansion in the Philippines, visit www.inDrive.com.
Transparency, compliance, and local partnerships are the keys to success for startups expanding in the Philippines. Learn from inDrive’s experience and stay ahead in this vibrant market!