Ride-Hailing Apps for LAMAT Services and Their Influences in Asian Developing Cities (アジア途上国都市におけるLAMAT向け配車アプリとその影響)

The 44th Symposium on Japan Transport and Tourism Research Institute: Autumn 2018 November 21, 2018 Tokyo, Japan

Ride-hailing Apps for LAMAT Services and Their Influences in Asian Developing Cities (アジア途上国都市におけるLAMAT向け配車アプリとその影響)

Research Fellow PHUN Veng Kheang ポンヴェンキェン

一般財団法人運輸総合研究所 Japan Transport and Tourism Research Institute

(C) Dr. PHUN Veng Kheang, Japan Transport and Tourism Research Institute, 2018 1. LAMAT Concept LAMATとは? 2. Ride-hailing Apps 配車アプリ 3. Motivation & Objective 研究の背景と目的 4. Case Study ケーススタディ 5. Policy Discussion 政策議論

Indonesia Nepal @Yai Thailand

Silorlek

Safa Tempo Angkot & Becak, @Yai Tuktuk Songteaw Philippines Tricycle

Jeepney Multicap Jeepney Samlor Motorcycle taxi Japan India @Yai Laos Myanmar @Yai

Bajaj Jambo Sidecar

LAMAT is proposed and used instead of Paratransit because:  Different paratransit concepts in developed vs. developing countries.  Various terms for paratransit (e.g. informal transport, third world transport).  To cover all paratransit services in Asia.

Source: Phun & Yai (2016)

Motorcycle Taxi Taxi Van

Angkot

Long-tailed Remork Songtaew

PinoyRepublic.tv Ride-Hailing Apps (RHAs) Jeepney  E-Jeepney Smart card for E-Jeepney Source: Phun & Yai (2016)

(C) Dr. PHUN Veng Kheang, Japan Transport and Tourism Research Institute, 2018 1. LAMAT Concept LAMATとは? 2. Ride-hailing Apps (RHAs) 配車アプリ 3. Motivation & Objective 研究の背景と目的 4. Case Study ケーススタディ 5. Policy Discussion 政策議論

 Smartphone with GPS, internet, and available digital maps enables technologies for ride-hailing services via ride-hailing apps (RHAs).

(play.google.com 2017.9) Fig. Global map of dominant ride-hailing apps (Source: Similarweb, 2016)

. Uber now covers 107 countries. . Grab expanded to 225 cities in 8 Asian countries.

1990s

Platform where individuals can hail and 2009 pay for a ride from a driver via an app.

2014

Fig. Evolution of share mobility services in USA (Source: Clewlow and Hishra, 2017) RHA  RHA is a smartphone-based app for hailing a ride.

 In Asia, more RHAs have been developed for LAMAT (Taxis, Auto-rickshaws, Bike Taxis, Rickshaws), and quickly expanded.

Fig. Cumulative number of RHAs in some Asian countries by year

(C) Dr. PHUN Veng Kheang, Japan Transport and Tourism Research Institute, 2018 急速に拡大するなか： 10 RHAsにユーザーが求めるもの USA Indonesia Philippines Safety 26%

Convenient 24%

Reputation 16%

Peer recommendation 10%

Lack of alternative 9%

Cost 5%

N = 582 online respondents N = 515 participants in 12 cities N = 55 Taxi riders Source: reportlinker.com (2017) Source: ecommerceIQ (2018) Source: Adriano and Su (2017)

 Most important features about RHAs are Always accessible, Safety, Convenient, and A better cost.

• Arrival of RHAs has been well welcomed by general citizens, but mixed reactions by traditional LAMAT operators.  Disruptive Transport? LAMAT operators protested against RHAs! 15 Aug. 2016 03 Oct. 2017 14 Mar. 2016

Malaysia: Taxi drivers protested the Indonesia: Drivers are unhappy with Indonesia: Ojek drivers demanding a legalization of Uber and Grab. better revenue system and a regulation RHAs eating into their transport share. (https://paultan.org/cn/2016/08/15/taxi-wants-protest/) (https://mashable.com/2016/03/14/jakarta-taxi- that acknowledges their existence. protest/#AMjIFDQY_GqX) (http://www.thejakartapost.com/)  RHAs have created Significant debates worldwide on issues: . How RHAs should be regulated . Their safety implications, and . How they influence travel behavior.

 Previous RHA studies focused on: • Rule change from the viewpoint of market regulation, • Competitive effects from an industry standpoint, • Labor changes from the stakeholder perspective.



China: RHAs interferes with taxis’ normal & lawful operations. (www.chinadaily.com.cn/)



• Phnom Penh city

(C) Dr. PHUN Veng Kheang, Japan Transport and Tourism Research Institute, 2018 1. LAMAT Concept LAMATとは? 2. Ride-hailing Apps 配車アプリ 3. Motivation & Objective 研究の背景と目的 4. Case Study: Phnom Penh ケーススタディ: プノンペン 5. Policy Discussion 政策議論

• – Land area : 678.5 km2 – Population : 2.1 million – GPD per capita : 1,111 USD in 2016 – Modal share 2012 : 15.4% LAMAT • Public bus service since Feb. 2014 • JICA target mass transit (Bus + Rail) 30% by 2035

Minibus 0.3% Others Car 1% Taxi 1.9% 8% Remork Motorcycle 3.5% 52% LAMAT 15.4% Motodop 7.5% Walking LAMAT Bicycle 15% 9% LongRemork 2.2%

Fig. Modal share in Phnom Penh, 2012

General traffic situation in Phnom Penh (Source: JICA-PPUTMP, 2014)

. . .

• Date: January 23-27, 2018 • Respondents: 182 Bajaj drivers with RHAs • Method: Questionnaire-based face-to-face interview • Data: Operational characteristics, working conditions, etc.

Marital Status Single, Age 13% (N = 182) 50-60 6% 40-49 14% Married, 30-39 52% 87% 19-29 28%

Education Level Duration Since Working as Driver University 5% > 2 years 17% High school 35% Secondary 45% 1-2 years 6% Elementary 14% ≤ 1 year 78% Never study 1%

 Majority (>78%) were in younger age (<40 years), married, higher education, and new drivers (≤1 year).

Fixed fare Others 4% 10% Others 13% Save time 6% Apps errors Customer issues 34% More customers 15% 48% Higher revenue 32% High commission fee 38% (N = 182)

Fig. The GOOD Points about using RHAs Fig. The BAD Points about using RHAs

 About 80% liked RHAs because  They (72%) did not like about RHAs helped them get more RHAs due to frequent app errors customers & higher revenues. and high commission fee.

• Commission fee is the proportion of total fare—paid by a RHA customer—that drivers need to pay to RHA company. 25 Max 20 Mean 15 Min

Commission Fee(%) 5

0 PassApp WeGo UGO711 iTsumo EXNET CAMGO FastGo TosTov (52%) (19%) (16%) (8%) (2%) (1%) (1%) (0%) Fig. Commission Fees Reported by Bajaj Drivers with RHAs (N = 182)

 Commission fees ranged from 0% to 20%, with the average of 9.2%.

(C) Dr. PHUN Veng Kheang, Japan Transport and Tourism Research Institute, 2018 22 RHAs車両の旅行速度と利用経路 Operating Speed based on GPS-data (N = 10)

Operating Routes based on GPS-data  Average operating speed: 8.8 km/h distance: 80 km/day

CBD  Major trips via RHAs concentrated within the downtown area.

 40% upgraded their old-style LAMAT vehicles/services with RHAs. New driver Former driver 60% 40% Share of RHA drivers (N = 182) RHAs

Daily working Number of Number of daily Monthly hours daily trips customers revenue (USD)

10.8 63% 62% 14.7 21.9 46% 416.7 8% 9.0 13.5 286.3 10.0

Before After Before After Before After Before After

 After adopting RHAs, drivers significantly increased their daily trips/passengers and monthly revenue.

 Overall results show that RHAs helped improve operational services & livelihood of Bajaj drivers in Phnom Penh.  40% of Bajaj drives, who have switched to adopt RHAs, could increase their daily trips/passengers & monthly revenue.  60% new drivers directly operated with RHAs, suggesting new job opportunities into labor market of LAMAT.

Research Question Whether RHAs would be regarded as threats or opportunities among LAMAT operators in Asia? Answer For Phnom Penh case, RHAs are opportunities for those drivers who have adopted them, but NOT SURE whether RHAs are threats for those who have not.

(C) Dr. PHUN Veng Kheang, Japan Transport and Tourism Research Institute, 2018 1. LAMAT Concept LAMATとは? 2. Ride-hailing Apps 配車アプリ 3. Motivation & Objective 研究の背景と目的 4. Case Study: Phnom Penh ケーススタディ: プノンペン 5. Policy Discussion 政策議論

 One observation: Traditional Remorks Remorks become fewer on city streets since the arrival of Bajaj with RHAs.  However, Remork still has its market:

. Customers from hotels, markets, schools, etc. Bajaj with RHAs . Loyal customers (e.g., friends, neighbors) . Citizens who not use a smartphone  Another observation: A few Remorks registered to RHAs.  Not so attractive, as Remorks consume gasoline, charging higher fare/km (Bajaj uses LPG, cheaper fare).

 Although news reported that demand for Remorks has been squeezed by RHAs, no protest has been seen.

Proposed NAHA policies:

• Only existing LAMAT ①No RHAs RHAs are not allowed at all

• Existing LAMAT to advance with RHAs ②Advancement RHAs are allowed for only existing LAMAT vehicle/service

• Existing LAMAT±RHAs + new/private vehicles with RHAs ③Harmony New/private vehicles with RHAs to co-exist with LAMAT

• All new services with RHAs ④All RHAs Replace all existing LAMAT by new/private vehicles with RHAs

 Results from Phnom Penh case supports scenario . Yet, we still can consider scenarios and with regulations.

(C) Dr. PHUN Veng Kheang, Japan Transport and Tourism Research Institute, 2018 : 28 シナリオ②：日本がRHAsをどのように規制しているか？  Japan law bans private drivers from transporting paying passengers; RHAs are for only taxi & car-dispatch services.

 RHAs for Taxis in Japan: . JapanTaxi (NTT Docomo) for Nihon Kotsu Group. . Didi Japan (Didi China + Softbank) began operation @jonrussell with 10 local taxi companies in Osaka. . Uber piloted its service in Awaji island, and is working with Fuji Taxi Group in Nagoya.

 A reason of introducing RHAs is to facilitate growing tourists.

 JapanTaxi & Didi Japan to develop AI for improving efficiency (e.g., prediction technology, dispatch & management system, integrated payment).

Japan has advanced its existing Taxi services with RHAs.

Possible Reasons: Good urban mass transit system -Unlike Cambodia, major urban citizens use rail/bus services Regulatory constraints -Safety concerns: only Taxi company can operate with RHAs -Taxi industry opposes to private vehicles with RHAs No Taxi problem -Easy to find a Taxi in big cities -High quality of Taxi services (polite drivers, comfort, safety) Higher Taxi Fare -Taxis with RHAs pay commission fee, might charge higher

(C) Dr. PHUN Veng Kheang, Japan Transport and Tourism Research Institute, 2018 : 30 シナリオ③：中国がRHAsをどのように規制しているか？  Before regulations: Anyone could be RHA driver  protests against RHAs since 2015.

 July 2016: China established new regulations to govern all for-hire services.

New Chinese regulations provides basic principles for local gov’t to create innovative and flexible (de-)regulation on supply quantity, fare, labor protection, and market entry.  Oct. 2016: Beijing, Shanghai, & Shenzhen regulate RHAs: New Policy for RHA Drivers 1. Drivers must be local resident 2. Driving experience > 3yrs, males < 60yrs, females < 55yrs Extra Benchmarks in Shanghai 3. Drivers should have “Taxi-hailing driver license” 1. No orders from railway stations and airports 4. Vehicles must have local plates 2. Vehicles’ wheel base > 2.7m with engine > 2.0 liters 5. Insurance is required 6. Two carpool orders limitation per day

Philippines view RHAs as safer & more convenient commuting options for citizens.

• RHAs are not yet as disruptive innovation. Traditional taxi industry can still compete with RHAs.

• While taxi operators continue to protest against RHAs, they fail to realize & prioritize the needs by customers/drivers.

 Philippines has established legal framework to regulate RHAs & to tackle with the increasing urban mobility.

 This study assessed changes in the operational services of LAMAT drivers with RHAs in Phnom Penh, as a case study.  RHAs improved operational services and livelihood of Bajaj drivers who have adopted them. . Traditional Remorks without RHAs, still have potential users.  For now, RHAs are not yet Disruptive Transport in Phnom Penh.

 If more citizens use RHAs  Worse traffic congestion!  Further studies needed to draw proper policy for RHAs in Asia: • To examine impacts of users’ RHA adoption on travel behaviors and transit ridership (i.e., demand side). • To review on regulations for RHAs (i.e., regulator side).

Adriano, A.M.M., Su, C.C. (2017). Out with old, in with new: A study on the vehicle hailing preferences of Filipino Taxi riders based on participation intent. International journal Real Estate Studies, 11 (1), 75-81. JICA-PPUTMP (2014) Project for Comprehensive Urban Transport Plan in Phnom Penh Capital City (PPUTMP). Japan International Cooperation Agency. Phun, V.K., Yai, T. (2016). State of the art of paratransit literatures in Asian developing countries. Asian Transportation Studies 4, 57-77. Phun, V.K., Masui, R., Yai, T. (2018). Operational Characteristics of Paratransit Services with RHAs in Asian developing cities. The case of Phnom Penh. Journal of Transportation Technologies, 8 (4), 291-311. Sun, Z., Yu, M., Zeng, J., Wang, H. and Tian, Y. (2017) Assessment of the Impacts of App-Based Ride Service on Taxi Industry: Evidence from Yiwu City in China. Compendium of Papers of Transportation Research Board 96th Annual Meeting, Washington DC, 8-12 January 2017, 1-12.

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