TECH4GOOD
Southeast Asia, including the Philippines, has witnessed a whirlwind of change in recent years driven by the digital transformation of its economy. The image of a bustling city in the region often includes a symphony of honking horns and slow-moving vehicles brought by the usual traffic. In Southeast Asia, a distinct sound joins the chorus - the hum of motorcycles, an ubiquitous sight in nations like Vietnam, Indonesia, and the Philippines. Beyond the noise and fumes, these motorcycles are not just transportation but the engines powering a unique form of nation-building fueled by the tireless efforts of delivery and motorcycle taxi riders.
The meteoric rise of motorcycle-based services in the Philippines is undeniable. From food orders to groceries and documents to e-commerce purchases and getting to destinations quickly - Filipinos increasingly rely on their trusty "tapat" riders. Beyond the convenience, however, lies a deeper story that intertwines economic growth, social transformation, and the unsung heroes who keep the wheels turning – the riders themselves. They are the arteries pumping goods, services, and people through the urban network, connecting businesses with consumers and facilitating economic activity. They are reshaping how Filipinos live, travel, work, and consume.
The tipping point happened when the country went through challenging times recently. During the COVID-19 pandemic, when lockdowns and restrictions limited mobility, delivery riders ensured the flow of essential goods, enabling people to access food, groceries, and other necessities while staying safe at home. Their role was crucial in mitigating the economic impact of the pandemic while providing a critical livelihood lifeline for them.
The story begins with the current boom of the Philippine digital economy driven mainly by e-commerce. With the e-commerce growth comes the growing demand for convenience. Filipinos, particularly in urban areas, have embraced the ease of ordering anything they need with a few taps on their smartphones. Platforms like GrabFood, Lazada, Shopee, and Lalamove cater to this demand, offering a vast network of riders willing to deliver goods ordered online to their doorsteps in record time. This convenience has revolutionized how we shop, eat, and even send packages, blurring the lines between online and offline experiences.
The traffic situation and inefficient public transport systems in urban areas like Metro Manila spawned motorcycle taxis or “habal-habal” services. They can traverse narrow streets and alleys, reaching areas inaccessible to traditional taxis or buses. Their flexible routes and ability to weave through traffic offer faster journeys, especially during peak hours. For drivers, motorcycle taxis offer flexible work hours and income potential, especially during peak seasons or in high-demand areas.
The ease of delivery has fueled the growth of e-commerce in the country, especially for MSMEs. Businesses can now reach a wider audience and deliver their products directly to customers, boosting their sales and contributing to economic growth. They do not need to invest in delivery vehicles because riders can fill the gap. The impact of delivery riders on the economy is undeniable. They contribute to the growth of e-commerce, estimated to reach $23 billion by 2025, and support the thriving gig economy. This translates into increased tax revenue and economic activity for the Philippines.
Delivery and ride-hailing platforms have become significant job creators, offering flexible income opportunities for thousands of Filipinos. Estimates suggest almost a million Filipinos rely on these platforms for income. This has helped reduce unemployment and poverty and provide much-needed financial support for families, particularly those facing limited job opportunities. These young and tech-savvy riders often come from diverse backgrounds and seek flexible work opportunities. They navigate the bustling city streets, braving traffic and weather, to deliver our orders or bring us to places promptly. Their dedication and resilience are crucial to the smooth functioning of the platforms.
It's important to remember that the situation of platform riders is complex, with various perspectives and ongoing debates about customer treatment. Many delivery riders' stories embody the Filipino spirit of resilience and adaptability. They navigate challenging circumstances to earn a living and contribute to society, inspiring others with their hard work and determination. These individuals, often invisible in the rush of our daily lives, are quietly reshaping the Philippine economy profoundly.
E-commerce platforms have undoubtedly changed how Filipinos live. From faster mobility and convenient access to food to the comfort of online shopping, their services have woven into everyone’s lives. Their future in the Philippines is intertwined with the well-being of its riders. To sustain the growth, platforms and policymakers must always work together to create a sustainable industry model that balances growth with rider welfare.
Riders are not merely gears in the digital economy machine but the human faces behind the convenience we enjoy today. Always remember the human story behind the service. Clicks may fuel the rise of digital platforms in the Philippines, but the riders' human spirit keeps the economy moving forward. ([email protected])
(The author is an executive member of the National Innovation Council, lead convenor of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics and AI Association of the Philippines, and vice president, UP System Information Technology Foundation.)