The Philippines’ transportation system has been a point of contention for years. With high surge fares, driver shortages, and a largely “broken” public transport system, commuters have been left yearning for more options.
Enter Tara, a budding ride-hailing app making waves on social media and hoping to address these long-standing issues.
Content
What is Tara App?
Tara, despite being an upcoming app, has swiftly garnered attention, especially on social media platforms. Its rapid ascent can be attributed to its branding as a “cost-effective Grab alternative.”
To understand its potential significance, one must remember the context: after Uber‘s exit from the Philippines, Grab took center stage, holding an almost uncontested monopoly over the ride-hailing market. This led to soaring fares, leaving users disgruntled. It even caught the attention of regulatory bodies, resulting in the Philippine Competition Commission slapping Grab with a near P40-million fine for pricing discrepancies.
What Does Tara Offer?
At the heart of Tara’s promise is the founder, Erwin Dee. His commitment? A more affordable ride-hailing experience. Unlike its competitors, Tara aims to keep its fare structure transparent and free from sudden surcharges. Dee assures adherence to the fare matrix set by the Land Transportation Franchising and Regulatory Board (LTFRB), potentially saving users up to P300 during rush hour or on long journeys.
Moreover, the app is devised with both drivers and passengers in mind. By pledging not to extract commissions from its drivers and allocating a whopping 80% of its ad revenue for user benefits, Tara seeks to foster a healthier ecosystem. The subscription-based model is an innovative approach in the ride-hailing sector. A sneak peek reveals a “Basic” plan, priced at P30 monthly, allowing for three bookings.
Legal Hurdles on the Horizon?
But it’s not all smooth sailing. For Tara to gain a legitimate foothold in the market, it needs to be authorized as a transport network company (TNC) by the LTFRB. As of now, there’s no record of Tara initiating this essential application process. The criteria are stringent, requiring companies to maintain a P5 million bank deposit, set up a physical office locally, and complete various official protocols.
In recent report, Joel Bolano from the LTFRB’s Technical Division emphasizes that without this accreditation, Tara might face legal repercussions if it begins operations. Earlier this year, the LTFRB issued warnings against two unaccredited Russian ride-hailing entities, InDrive and Maxim. Such unapproved operations risk not just regulatory backlash but also concerns over service quality and safety.
The traction Tara and even unauthorized services like InDrive and Maxim have received highlights an undeniable gap in the Philippines‘ transport scene.
Wrapping Up
The emergence of Tara underscores an urgent message: Filipino commuters are on the lookout for efficient, affordable, and reliable transportation solutions.
While Tara shows promise, its journey has just begun. Whether it becomes a formidable player in the ride-hailing market or faces challenges due to regulatory hurdles, it has undoubtedly ignited a conversation about the future of transport in the Philippines.
More Stories Here
