Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Catalyzing New Mobility in Cities:
The Case of Metro Manila

Ateneo Center for Social Entrepreneurship (ACSEnt)
Ateneo School of Government, Pacifico Ortiz Hall
Ateneo de Manila University
September 4, 2012

with generous support from

Typology of Business, Social Enterprise
and Social Innovation Models for Inclusive
Mobility in Metro Manila

Evolving Concepts of
Inclusive Mobility

• UK Disability Discrimination Act of 1995:
right of disabled people to goods,
facilities, and services including transport.
• Integrated Transport Planning (ITP):
Mobility for All
• UK’s Inclusive Mobility Guide for better
access to pedestrian and transport
infrastructure

Inclusive Mobility
• Walk 21: the right to accessible streets,
squares, buildings and public transport
systems regardless of their age, ability,
gender, income level, language, ethnic,
cultural or religious background,
strengthening the freedom and autonomy
of all people, and contributing to social
inclusion, solidarity and democracy

Inclusive Mobility

• Stockholm: Participative transport
city planning
• City of Stuttgart, Germany: capacity
of participate in the labour market or
reach work places efficiently -- at
reasonable cost and time

Inclusive Mobility

• Cities for Mobility Initiative: socially
inclusive mobility for all including
disabled, parents with small
children, the sick and poorer
people

Inclusive Mobility

Inclusive Mobility Philippines:
• A transport system that works for the poor and vulnerable
• A walkable, bike-able, accessible city
• Moving people and not vehicles
• Mobility with safety and civility
• Clean air, clean streets, clean vehicles, clean facilities,
• Planning and communicating better traveling less
• Sharing information to increase connectivity and accessibility
• Making neighborhoods more accessible to the rest of the city
• Changing mindsets and behaviors – the authorities’ as well as other
• Mobility of all , by all, for all

Research Goals & Objectives

• Mobility challenges of the poor and vulnerable sectors;
• Existing/emerging transport/mobility related business
innovations and social enterprises that take into
consideration the principles of:
– Sustainable inclusive mobility benefitting the poor and
the vulnerable
– Scalability and replication
• Market barriers and enablers :
o Policy
o Economics
o Socio-Cultural

Research Questions

1. What are the mobility challenges of the poor and the
vulnerable sectors?
2. What are the existing/emerging business and social
enterprise models in the transport and mobility sector that
supports inclusive mobility? Do they effectively benefit the
poor and vulnerable?
3. What are the barriers and enablers to implementation,
replication and scaling up inclusive mobility innovations?

State of Transportation in Metro Manila

• Market Analysis
– Private motor vehicles contributes to 53.2% of all
traffic composition but caters only to 21.6 of
transport demand
• Economics
– Incurred losses of P140-B annually due to wastage
of fuel and loss of productivity.
• Infrastructural
– Absence of proper road infrastructures.
– Commercial developments placed along major roads
creating bottlenecks.

State of Transportation in Metro Manila

• Health and Safety
– Increasing road safety issues – accidents, casualties,
deaths
• Environment
– Road congestion due to increase in number of
private cars contribute to air pollution
– Road transport GHG emissions: 253,613 tons CO2e
(Makati City alone, base year 2010)

Mobility Challenges of the Poor and the
Vulnerable Sectors
Cost (Poor)
– No choice/alternative modes, Need-basis
– Public transportation is cheapest

Cost (Vulnerable)
– Affordability depends on the economic standing of
the person
– Limited incentives (discounts) for vulnerable groups
– e.g. PWDs

Vulnerable Sectors
Length of travel (Poor)
– Attributed to long travel hours
– The poor do not have alternatives with regards to
their travel routes

Length of travel (Vulnerable)
– Even more problematic due to their constraints (e.g.
physical) – limited travel options
– Longer travel time: lack of facility to aid their
mobility

Vulnerable Sectors

Challenges in terms of access to basic goods and
Services
– Not due to lack of transport modes, but in
terms of the cost of goods itself (indirect
influence due to cost of transport)

Framework for Business and Social
Enterprise Models for Inclusive Mobility

Framework for
Sectors:
Analyzing Inclusive Telecommunication
Human security,
Mobility Models Well-being,
s and wireless, e-
business and new
Vulnerability media, information
reduction
technology,
tourism and retail,
transportation
Increase income Education operations and
services, goods
Urban Infrastructure on movement and
transportation: Inclusive Mobility
supply chain
Business Models
Transportation conduits management,
such as:Streets and (Travel and transport- intelligent
highways; integrated related options transportation
transportation systems; benefiting the poor systems, real
and vulnerable:
new services, products, estate,
transport modes, Value proposition, target construction,
customer, distribution Environmental
technologies, and Decent Work planning and
designs. channel, relationship, value sustainability operations,
configuration, core geomatics,
Mobility-related –behaviors: restroom stops; competency, partner financial services,
Coffee, water or food stops; Shopping stops; network, cost structure, banking and
Communication stops (for those who may not revenue model investment,
have cellphones); Utility bills payment stops; Gender equality transportation
Socializing stops (meeting friends); Spiritual and equity equipment, clean
stops (i.e many stop at the EDSA shrine or
energy
Quiapo Church to pray before the proceed to
wherever they want to go); Others

Assessing Business, Social Innovation and
Social Enterprise Models for Inclusive Mobility

Two major levels of analyses
(1) In what way the transport service
benefits the poor / vulnerable sector
(2) Examines the elements of the business
model

Analytical Tool: LEVEL 1

Transport-related Health Education Material Social Political Envtal Human Well Decent Gender Total
Goods sustainability security being work Equality

Example 1    3
Exaple 2       6

Examples of Business and Social
Enterprise Models for Inclusive
Mobility:
INTERNATIONAL

Inclusive Mobility Business Models
(Transport Service)
Mobius Motors, Africa

• Sustainable mode of transport
for rural villagers in Africa
• Motor parts configured to suit
the needs of the region (e.g.
Terrain)
• Flexible financing for rural
entrepreneurs

Inclusive Mobility Models
(Transport Service)
Zipcar
• Car-sharing program (Cambridge, Massachusetts)
– United States, Canada and UK
• Attempts to lessen cars, congestion and pollution.
• Offers competitive alternatives to car-ownership
• Rates and fares of users vary depending on their membership
plan. Both plans are inclusive of gas, insurance and 180 miles
of driving.
• Payment to ZipCar is automatically charged to the client’s
credit card

(Access to Goods)

Coca-Cola Company’s Inclusive Business
Model in East Africa
• a manual delivery approach, linking small-scale distributors to small –scale
retailers owning or running small stores or kiosks in densely populated urban
areas
• Needs Assessment of the Manual Distribution Centers (MDCs); recruitment
of MDC owners; identifying and defining the MDC territory and customer
base (i.e., service area= 1 kilometer in circumference reaching up 150 retail
outlets); provision of start-up support and guidance (i.e., “business licenses,
pushcarts, rent, initial stock of empty crates and bottles, and beverage
supply, credit for crates and empty bottles”, guidance on human resource
concerns

(Basic Services)

Mi Tienda, Mexico

• affordable door-to-door delivery of individual items
within 48 hours, extended payment terms , and
business training for its clients

(Basic Services)

Washcycle
• A social enterprise based in Philadelphia
• Wash-and-fold laundry service that offers a more
sustainable, environment-friendly door-to-door
laundry service
• Innovative business solution is focused on a low-
cost, low-carbon model
• Makes use of bicycles instead of the usual
components of big delivery and manufacturing
industries such as trucks and loading areas

(Business Services)
PT Summit Oto Finance, Jakarta
• Motorcycle financing for low-level economic employees or mico-entreprise
owners
• small loans to borrowers to earn roughly about $150-$300 a month, only
have primary, education, typically run micro-enterprises but do not have
bank accounts
• Client due diligence characterized by close customer contact,
understanding of borrowers during the underwriting stage, structured
appraisal process, tracking of downpayment and month loan repayment
relative to monthly income.
• Robust distribution network and strong partnerships (ie. with 4000
authorized dealers of leading motorcycle brands)

Examples of Business and Social
Enterprise Models for Inclusive
Mobility:
PHILIPPINES

Inclusive Mobility Models: Philippines

Clean Fuel
Targets loyalty to taxi drivers by providing the following services:
• Free shower room and sleeping quarters (for all taxi drivers)
• Canteen
• Loyalty program that has reward options for the entire family
and not only for drivers (i.e, kitchen implements, household
equipments, toys, etc)
• Free tune-up
• Monthly calibration of pumping units as part of the confidence
builidng measure
• Drainage canals that do not lead to urban centers’ potable water
system
• Taxi franchise linked to use of Clean Fuel use


ICT-based Navigator
Systems
• Traffic navigator - real-time status of
road systems during rush hour.
• Online platform where commuters can
log on to check the status of road
congestion in major corridors along
EDSA, the central highway in Metro
Manila.
• Internet and phone applications

http://ww1.nestle.com.ph/recipe/nestleclub/nestlecares_article02.asp


Araneta Center
Targets provincial bus users at the low-income bracket
• Customer needs appraisal
• Safe, clean and customer-friendly terminals
• Integrated transport services (ie. LRT, taxi, FX service,
free parking spaces at the terminal, porter services)
• Employment for those at the low-end income
bracket: utility services, self-employment via porter
service system
• Passenger terminal with access to restrooms, waiting
lounge, food stalls, medicines, communication
facilities or services
• Passenger terminal strategically linked or proximate
to other business establishments


Pepeng Pasada Shell
Targets loyalty among tricycle , jeepney, taxi,
commercialdrivers by providing the following reward
services:
• Regular membership]
• Points earned per minimum of 3 liters
• Points can be redeemed for free home appliances
and other items, free accident insurance and other
related benefits
• Participation in exclusively yearly promos


Julie’s Mobile bakeshop
• Neighborhood bakeshop chain – making bread
accessible to all
• Service excellence and total consumer satisfaction
• “Selling distinctively delicious, freshly-baked, high
quality bread products; and committed to upholding the
stringent standards of the Julie’s Bakeshop System:
Quality; Customer Service; Cleanliness; Sanitation;
Maintenance; and Reliable Management”
• Full management support to franchisees in all steps of
the business process including Franchise Application and
life-snaps.blogspot.com
Development; Training; Marketing; Construction;
Operations; Accounting; Human Resource Development;
and Expansion


Smart Communications
Targets sari-sari stores to reduce transport and other
transaction costs in negotiating with wholesalers
• Partnership between Smart and Hapinoy sari-sari
stories for the use of Smart Money in the B2B
transactions with the assistance of Microventures (to
aggregate orders and negotiate bulkpricing from
wholesalers ie Nestlle and Unilever)
• Discounts with wholesalers when they use Smart
Money as payment
• Increased competiveness in pricing, safety, risk
reduction to theft and loss for store owners and
delivery personnel


Nestle Micro-
distributorship Program
Expanding reach beyond barangays:
• Provides livelihoods to thousands of
unemployed citizens (at least high school
graduates with an opportunity to become
small scale entrepreneurs)
• Micro distribution to sari-sari stores in densely
populated areas that cannot be covered by
existing Nestle distributors

http://ww1.nestle.com.ph/recipe/nestlecl
ub/nestlecares_article02.asp


Ice Cream and Nestle
Professional
Expanding reach beyond barangays:
• Ice Cream: sell range of ice cream products to those
who purchase on “impulse” through street vendors
• Nestle Professional: Business on Wheels (BOW)
selling Nestle products to small carinderias
• Peddlers are trained in selling, product knowledge,
and mechanics of program, equipped with Nestle-
branded motorized cabs and uniforms, enjoy
discounts on distributor rates, allowed to mark-up
prices on certain percentage

http://ww1.nestle.com.ph/recipe/nestleclub/nestlecares_article02.asp


E-Jeepney
• Electronic jeepneys that run on
rechargeable battery
• “Makati Green Routes”
• Private-public partnership with LGU



Online /Pick-up Order
System: Gamot Padala
• Mercury Drug
• Free phone-in / online order of
medicines



Cashless Transactions
• Smart money
• G-Cash
• Pasaload
• Revolutionizing the way we conduct
payments and transfer of money


Barriers
• Policies
– Institutional regulations and structures are mainly
government or public sector dependent.
– Laws that exist provide limited flexibility to address
mobility problems of the poor and the vulnerable.
– Regulatory mechanisms: vehicle registration, traffic rules
and other forms of transport-related policies do exist,
these do not entirely present solutions to managing
mobility issues
– CLUP – use and allocation of land
• Economics
– Limited financial, economic incentives (taxes, financing
schemes)

Barriers
• Cultural
– Shift in mindset - culture of individualized mobility
– Construction of car-ownership as a form of status symbol
• Developmental
– Absence of proper road infrastructures
– Commercialization, private-sector led – fragmented
urban design and planning

Enablers
• Institutional Actors
– Advocacy groups, networks, academe, NGOs
– Multi-sectoral stakeholder approaches
• Economics
– Tax incentives
– Recognition/Prioritization of opportunities
• Developmental Framework --- LEED
– Benchmarking system
– Incentives
• Policy Measures
– Comprehensive “metropolitanization” policy

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