Lalamove is stepping into the already competitive ride-hailing market in the Philippines, announcing plans to onboard 15,000 drivers in the first half of 2025.

With the likes of Grab and JoyRide already entrenched in the industry, Lalamove is betting on its logistics network and ultra-low commission rates to carve out a space for itself in Metro Manila, Pampanga, and Cebu.

The move marks a significant expansion for Lalamove, a company that has long been known for deliveries rather than passenger transport. While other ride-hailing platforms charge commissions as high as 20-25%, Lalamove is starting with a minimal 2% cut, allowing drivers to keep 98% of their earnings. This aggressive pricing strategy could attract drivers looking for higher take-home pay, especially as fuel prices and operational costs continue to rise.

Lalamove joins a market where Grab, which entered the country in 2013, still dominates and has millions of active users on its books who not only use the app for rides, but also for everything from food delivery to grocery shopping. JoyRide and Angkas, who both started as motorcycle taxi services, have also expanded into car-based ride-hailing, making competition even fiercer. With years of head start, these three competitors alone have built extensive user bases and driver networks, making Lalamove’s late entry a challenge, but not an impossible one.

Any driver who fancies joining the country’s latest passenger transport option has to provide a Certificate of Public Convenience or Provisional Authority from the LTFRB, a professional driver’s license, an NBI/barangay/police clearance, and passenger accident insurance. The company also wants to see some photos of your ride to ensure it’s up to its standards. Drivers who are using a pre-owned vehicle also have to show a deed of sale, and those who are borrowing a vehicle from someone else need to submit a letter of authorization from the owner.

The demand for more ride-hailing options has been apparent for years, as public transport choices still lag behind other countries, and many people rely on private cars to get around. Lalamove mentioned in its press release that many of its customers had tried to ship themselves as well as any cargo in the past, purely out of desperation to get from A to B. Many people will, of course, know of instances where delivery drivers agreed in exchange for a cash tip, even if this practice was against company policy and indeed the law. Now, with a proper ride-hailing service in place, the company expects strong adoption from both commuters and drivers alike.

Unlike traditional ride-hailing platforms, Lalamove Ride drivers can switch between passenger bookings and delivery jobs, maximizing their income throughout the day. For example, they can take passengers during peak hours and shift to parcel deliveries during off-peak times. This flexibility could give the platform a unique advantage in the market.

To attract passengers, Lalamove is promising lower fares compared to its competitors while still adhering to the LTFRB’s pricing regulations. Features like real-time GPS tracking, a 24/7 in-app chat, an SOS emergency button, and accident insurance for both drivers and passengers aim to provide a safer and more convenient experience. The company will also offer a 20% discount for students, PWDs, and senior citizens in compliance with government mandates.

Despite its late entry, Lalamove’s approach could shake up the industry. By leveraging its existing delivery driver network and positioning itself as the most driver-friendly platform, it has a chance to carve out a meaningful presence. The big question now is whether its model will be enough to draw riders away from the apps that people already trust. One thing’s for sure: Metro Manila’s congested roads are about to get even busier with another ride-hailing player in the mix.