I’ve been in the Grabcar business since 2017. During that time, the LTFRB doesn’t care much about TNVS industry and other ride-sharing platforms. The driver’s income was also higher because Uber and Grab are still competing with one another. As of this writing, I am still operating my business but this time I already have my franchise issued by the LTFRB which allow me to legally operate my business. This business is not easy to operate but it is very rewarding. Allow me to share with you my learning as a Grabcar peer (operator).

My First Encounter with TNVS

My first encounter with TNVS was with Uber when I became its passenger. The first thing that comes to my mind when I first used Uber is that it is very convenient but it was very expensive too! The cost of the ride from Mandaluyong to Makati was around 500 Pesos. Despite the cost, I still felt that it was worth it because it is really very convenient. I didn’t need to wait too long to get a ride. I’ve been trying to hail a taxi but they kept refusing to give me a ride. It was then that I realized that TNVS is a good business venture.

Buying a car

The first car that I bought for TNVS business was a brand new Mitsubishi Mirage G4 2017. There are 4 reasons why I chose this car and these are:

1. It is fuel-efficient
2. It has low monthly amortization (12,987 Pesos per month)
3. It is affordable to repair
4. The replacement parts are easier to find

Fuel efficiency is very important in this kind of business. As we all know, the price of gasoline in the Philippines is very expensive and it continues to go up every year. In order to increase the income of your driver, your car must be fuel-efficient. If your driver will not earn, then your driver might quit if he doesn’t find driving profitable.

Amortization Cost is your biggest expense every month. Buying a car that have higher amortization cost doesn’t make sense to me. I don’t intend to use the car personally so I didn’t consider buying a fancier car. The lower the amortization cost, the easier it is to profit from the business. PERIOD.

Repair and maintenance cost is also a regular expense that you have to shoulder every month. I make sure I regularly change the oil to keep the engine running in good condition. I also make sure that the mechanic checks all possible damages so that we can repair it immediately. Mitsubishi auto parts are cheaper that is why my repairs and maintenance cost is lower compared to other TNVS operators who are using another brand of cars (except for Toyota of course).

Replacement parts for Mitsubishi Mirage are easier to find too! Since the car will be used almost every day, wear and tear of the auto parts are inevitable. I need to be sure that I can easily find the replacement parts.

Grabcar Operating Cost

LOOK! There are many things that you need to prepare for so make sure you handle your finances effectively. When I was just starting, I used all the money that I earned and didn’t save much for emergencies. I almost lost the car when it had to be repaired due to an accident and I don’t have many funds to pay for the amortization. LESSON LEARNED. Avoid this mistake if I were you. There are also other things that you need to prepare for. Below is a list of my expenses and my operating cost for Grabcar:

1. Amortization Cost: 13,000 Pesos per month
2. Maintenance Cost: 2000 to 5000 Pesos per month (depends if I need to repair something)
3. Comprehensive Insurance Cost for TNVS: 1000 Pesos per month (for 12 months)

My total monthly operating cost is from 17,000 to 20,000 Pesos per month excluding expenses for car registration with LTO and LTFRB franchise.

Grabcar Operator’s Income

For an operator collecting 1,000 Pesos per day, his gross monthly income will reach 26,000 Pesos. We assume that the operator is not collecting boundaries during coding days of the car. With a monthly expense of 17,000 to 20,000 Pesos, the net profit would be 6,000 to 9,000 Pesos. In most cases, this income is not enough for sustaining the whole family but this is good enough to cover some regular expenses like electricity, water or maybe groceries.

Personally, I don’t earn that much but I am happy with what I am getting. If the operational cost is high, your net profit will be low as well. If you have 3 cars, I can say that the earnings are decent enough to support some of your expenses. Having 3 cars is like having an apartment that earns 18,000 Pesos to 27,000 Pesos per month.

Your Grab Driver

Your Grab car driver is the key ingredient to the success of your business. Before you allow him to drive for Grab, secure valid government ID, proof of residency and NBI clearance for security measures. You are paying hard-earned money for your car so it is just right to make sure that you entrust your car to someone you did a background check.

Next, let driver operate his own business. What is important to you is that you get paid and that he doesn’t use your car illegally. Allow him to provide other services using your car. He is doing this so that he can feed his family and also, to pay the regular boundary. If you don’t trust him at all with your car, then don’t let him drive in the first place.

To increase your success in the business, make sure that you compensate your driver well. In my business, I make sure that my driver earns more than what I earn. After all, he does all the hard work. I also included benefits that he can use in the future. For instance, after 5 years of his commitment to me, I will give him the car. This is called boundary hulog for Grab Driver. This benefit increases the likelihood that your driver will stay with you longer and it is both beneficial to you and your driver. Lastly, your driver is your business partner – always remember that!

Secrets to Success

• VERY IMPORTANT: Take care of your driver. Your driver is the key to success of your business. Take care of him and he’ll take care of your business in return. Treat him fair and square at all times.
• Install a GPS. Buying a car is a huge investment especially for ordinary people like me. Having a GPS installed increases your car’s security feature.
• Buy an insurance that covers vehicles used for TNVS. Some insurance companies does not cover vehicles used for TNVS.

Have you decided to be a Grabcar Operator? Here is the list of requirements for GrabCar

To become an operator for Grabcar or Grabpremium in the Philippines, an applicant must submit all the Grabcar requirements first. Along the with these requirements, your vehicle model should not be older than three (3) years. It is also worth noting that Grab does not accept vans and pick-ups for their ride hailing service. Here’s a list of all qualified Grabcar vehicles.

Grabcar Requirements for Operators

• 2×2 Photo of applicant with a white background
• 2 valid government-issued ID
• Proof of citizenship (birth certificate or passport)
• Tax Identification Number ID (TIN ID) or Income Tax Return (ITR)
• Original Receipt/Certificate of Registration (OR/CR) or Sales Invoice and Delivery note of the Vehicle
• PA (Provisional Authority), CPC (Certificate of Public Convenience), or LTFRB TNVS Application with stamped receiving copy and case number. Read this blog post for TNVS requirements
• Comprehensive Insurance of the vehicle
• Map of garage (use Google Maps)
• Certificate of Conformity from the bank or from the financing company if the vehicle is currently under financing or encumbered

Additional requirements if the Operator is not the same as the registered vehicle owner

• Notarized Special Power of Attorney (SPA) if the operator is not the registered owner of the vehicle
• 2 valid government-issued ID of the registered owner of the vehicle (if the operator is not the same as registered vehicle owner is not the

Requirements for Grab Drivers

• Clearance from the National Bureau of Investigation
• Clearance from the Philippine National Police
• Professional Driver’s license with official receipt

Application Process

To be considered valid for Grab application, all the required documents must valid within 21 days before they expire. Applications for Grab peer start with filling out an online form, which can be accessed in the Grab website. Once this is done the applicant will be sent an email informing him/her of the Peer Information Session (PIS) schedule.

Applicants must have a registered e-mail address and bring with them a printout of the confirmation e-mail to attend the invitation-only Peer Information Session. Without the printed invitation sent by email, peer applicants will not be allowed in the information sessions. Moreover, the applicant must be prepared to submit the requirements to the Grab office with a photocopy of all documents along with the original papers.

On the appointed day, the applicant, along with his/her email confirmation and required documents must be patient to await their turn in the queue. Upon verification of the requirements, the Grab staff will provide the peer applicant with a Peer checklist and GCash Form. If the peer and driver are different persons, the driver will receive a Grabcar Driver’s checklist. The driver would need to proceed to a booth for his/her photo to be taken for the Driver’s App.

• BYD: E6, F0, F3, F5, L3, S6
• Chery: Fullwin
• Chevrolet: Captiva, Cruze, Optra, Sonic, Spark, Spin,
• Ford: Ecosport, Focus, Fiesta
• Geely: LC
• Honda: Brio, City, Civic, Jazz, Mobilio
• Hyundai: Accent, Elentra, Eon, Getz, I10, I20
• Isuzu: Crosswind
• Kia: Carenz, Carnival, Picanto, Rio, Soul, Forte, Optima
• Mazda: Mazda 2, Mazada 3
• Mitsubishi: Adventure, Lancer, Mirage, ASX, Fuzion
• Nissan: Almera, Cefiro, Grand Livina, Sentra
• Peugeot: 3008, 301
• Renault Samsung: SM3
• Ssangyong: Stavic
• Subaru: Impreza
• Suzuki: APV, Alto, Celerio, Ertiga, Kizashi, Swift, Swift Dzire, SX4, Kizashi
• Tata: Manza, Indica, Indigo, Vista
• Toyota: Altis, Avanza, Innova, Vios, Wigo, Yaris, BB, Corolla
• Volkswagen: Polo, Jetta

Allowed Vehicles for GrabPremium

• BMW: 3-series
• BYD: L3, S6
• Chevrolet: Orlando, Suburban, Trailblazer
• Chrysler: Town and Country
• Ford: Escape, Everest, Expedition, Explorer
• Great Wall: Haval H3

Got questions? Please feel free to leave a comment below. We’ll try to answer as quick as we can. Thank you!