Re/Discovering Cebu, one story at a time

Need a cab? Micab app now provides ride-hailing service for 3,000 Cebu taxis

Getting a taxi is now easier in Cebu, thanks to ride-hailing platform Micab that was developed by a team of young entrepreneurs. If you haven’t installed it yet, download the…

Getting a taxi is now easier in Cebu, thanks to ride-hailing platform Micab that was developed by a team of young entrepreneurs.

If you haven’t installed it yet, download the Micab app from the Play Store or App Store to get access to 3,000 taxis enrolled in the platform for Cebu alone.

Micab Systems Corp. was granted accreditation as a transport network company (TNC) by the Land Transportation Franchising and Regulatory Board (LTFRB) last April 30, said founder and CEO Eddie Ybañez.

What makes Micab different from transport networks like Grab and Uber is it doesn’t charge a booking fee when you hail a taxi using the app.

Micab founder Eddie Ybañez

INTERVIEW. Micab founder and CEO Eddie Ybañez answers questions during an interview by Cebu journalists.

 

Taxi 2.0

Ybañez said taxis subscribed to the Micab platform pay P500 a month and the fee covers the tablet and data that drivers need to run the app.

Without the booking fee, Micab Systems Corp. plans to get its main revenues from MiAds advertising. It has partnered with ad agencies to get companies to advertise on the tablets in the taxis.

Ybañez said the Micab platform, which he co-founded with Kenneth Baylosis during the Startup Weekend Cebu in 2012, came about as a solution to the perennial difficulty of getting a taxi that he used to frequently experience.

The TNC accreditation is a step forward in the company’s vision of a Taxi 2.0, which will involve clean and modern cabs driven by polite and friendly drivers. Although drivers can see a passenger’s destination in the Micab app, they won’t be able to cancel a booking once they’ve accepted it.

Micab target

The Cebu-based Micab company also now covers Metro Manila, Baguio, Bacolod, and Iloilo. In Manila, taxi bookings through Micab now go as high as 10,000 per day.

Although 80 percent of taxis in Cebu are already covered by the Micab platform, it still has to catch up with Manila in terms of usage, said Ybañez.

He added that they will continue to work with LTFRB and other government agencies “to innovate how Filipinos commute across our cities” to reach a shared goal that is the convenience of the country’s riding public.

Micab Eddie Ybañez

NO BOOKING FEE, NO SURGE PRICING. Micab founder and CEO Eddie Ybañez says their app does not charge a booking fee.

 

Digital hailing stations

Ybañez said they will also be soon deploying what he described as digital taxi hailing stations in major malls in Cebu City. Through these stations, commuters without the app can book a Micab unit.

The target for the year is to increase the number of taxi units enrolled in the Micab platform from 5,000 to 15,000.

Ybañez also said they will be building a system based on Micab for route-based units like buses, jeepneys, and vans-for-hire. He said this would likely be deployed early next year.

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Cebu startup takes on Uber, Grab; signs up Manila taxi operators

Just as global ride-hailing apps Uber and Grab are facing government regulatory problems, a Cebu-based startup today announced an agreement with taxi operators in Manila to expand its service to…

Just as global ride-hailing apps Uber and Grab are facing government regulatory problems, a Cebu-based startup today announced an agreement with taxi operators in Manila to expand its service to more commuters nationwide.

MICAB, a startup that started in Cebu that is now also incorporated in Singapore, today announced an agreement with the Philippine National Taxi Operators Association (PNTOA) and Association of Taxi Operators in Metro Manila (ATOMM).

The agreement expands the service area of MICAB, which is currently operating in Cebu and Iloilo with a fleet of 800 taxi units, said MICAB CEO Eddie Ybañez.

MICAB monthly bookings

He said MICAB currently serves 20,000 passengers with combined monthly bookings of 200,000.

PNTOA and ATOMM, Ybañez said, have a combined network of 20,000 taxi units. He said they plan to launch in Manila with 3,000 taxi units and scale up to 7,000 units by yearend. The company is also planning to expand to Davao.

In terms of application capability, MICAB is similar to Uber and Grab, Ybañez said. They differ in the business model.

Unlike Uber and Grab, MICAB does not directly deal with drivers. It engages with “premium taxi companies” and provides them an app-based system to dispatch units. MICAB works with Ken Taxi in Cebu and Light of Glory in Iloilo.

MICAB Manila

MANILA EXPANSION. MICAB, a ride-hailing app that started in Cebu, has expanded in Manila and signed up operators at the capital. In photo after the signing of the agreement are (from left) Pablo Sarmiento (left) of the Association of Taxi Operators in Metro Manila, MICAB CEO Eddie Ybañez, Atty. Bong Suntay of the Philippine National Taxi Operators Association, and David Vacher of MICAB. (Contributed photo)

No regulatory issues

Because of that, Ybañez does not see any regulatory issues for MiCab .

“We are not really subject to LTFRB’s TVNS regulations as our business model is to partner with taxi companies only. All our taxi operator partners are 100% compliant with LTFRB’s franchising regulations,” he said in an interviews.

The MICAB app functions similarly with both Uber and Grab.

“Application wise it’s the same, we will be adding in more features that is not currently present with Grab and Uber,” Ybañez said.

MICAB, however, does not impose surge pricing and collects only a low booking fee, he said.

Revenue model

The startup does not take a cut from drivers’ revenues. Its business model, Ybañez said, is “targeted geolocation advertising.”

“Our focus for the coming months is to successfully launch MICAB here in Manila, develop customer base, increase brand awareness through excellent customer service and solidify the taxi partner network,” he said.

MICAB started out as among the startups funded in the 2013 batch of IdeaSpace Foundation, the incubator of the Manny V. Pangilinan group of companies.

The startup, however, is looking beyond ride hailing. It is scheduled to launch later this year its MIHEALTH app, in partnership with “one of the largest HMO in the Philippines.” It will also launch MICARGO, in partnership with Gothong Southern Shipping Lines, in August.

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