Competition

Competition affects with lower fares services, but can also mean poorer service and more traffic stated
by Labajo (2020). There are also problems with rules and regulations. Even though there are rules about
routes and fares, it’s not always enforced (Santos, 2017). This makes things harder for everyone,
especially jeepney drivers (De Guzman, 2021). According to Garcia (2018), drivers that operate on high-
demand routes may encounter increased competition for passengers. According to a study by Reyes
(2019), well-maintained vehicles contribute to a favorable passenger experience, influencing their
preference for one jeepney service over another. According to Santos (2020), pricing techniques such as
offering discounts during off-peak hours might attract more customers, affecting jeepney drivers' overall
competitiveness. According to Lim (2021), positive online reviews have a significant impact on luring
passengers. Jeepney drivers who receive positive feedback are more likely to be competitive because
passenger feedback influences potential passengers' decisions.

While jeepneys and tricycles are owned by private operators, they are classified as PUVs in the case
country as they are available for use by the general public, charge set fares for every trip, and operate on
specific routes. Other modes of road public transport include buses, all-utility vehicles, taxis, and
“pedicabs”-non-motorized rickshaws (Agaton, Collera & Guno, 2020). With the rapid growth in
economic activities and urbanization, the PUVs, along with private vehicles, exponentially increased in
numbers, which resulted in poorer air quality and frequent traffic congestion in the cities ( Agaton,
Villanueva & Guno, 2020). Hence, as new transport technologies emerge, more bus riders switch to
other transport modes. The most attractive mode is private automobiles. Compared to city buses,
private autos provide people with enhanced comfort, privacy, and convenience, which leads to a
reduction in the willingness of using bus transportation (Manville et al., 2018, Yeh and Lee, 2019). Many
low-income people have been forced to live in the urban periphery because of personal financial burden,
but these areas are poorly served by bus routes as bus agencies have attempted to improve operational
efficiency by eliminating unprofitable lines (Irawan et al., 2019, Yang et al., 2020). However, as the
revenue from bus fares is usually not sufficient for covering operating costs, transit agencies have to rely
on subsidies from the government (Fei, 2016).

Critics argue that heavily subsidized transit agencies or enterprises lack the initiative to make a profit,
further leading to inefficient operations and financial crises (Boisjoly et al., 2018). Using a
competitiveness classified model which integrated travel time and travel cost, (Jiang and Zhuo (2018)
calculated that only 55.9 % of MCBS lines had advantages over SBBS in Beijing, and concluded that the
competitiveness of an MCBS line increased when both the origin and destination of the line were
outside the central city (Carleton and Porter, 2018). Jeepneys have been a big part of transportation in
the Philippines since after World War II (Corpuz, 2018). But now, there's a lot of competition among
jeepney drivers. They often run the same routes and lower fares to attract passengers and this evolution
has led to a landscape where intense competition among jeepney operators is a defining feature,
characterized by route duplication and fare undercutting (Tan, 2016). This competition is causing
problems, for drivers, it means less money to maintain and improve their jeeps. The resulting
environment raises concerns regarding its impact on overall transportation efficiency and profitability,
with studies indicating a range of economic implications according to Bautista and Mercado (2019).

Economically, the consequences of jeepney competitions extend beyond operators to commuters as well
(Bautista & Mercado, 2019). Lower fares, driven by competition, while beneficial to passengers, often
squeeze profit margins for operators, hindering their ability to invest in improving services. Moreover,
the fragmentation of routes due to competition can lead to inefficiencies in service delivery,
exacerbating traffic congestion and travel times. These economic challenges underscore the need for a
comprehensive understanding of the competitive dynamics within the jeepney sector and their broader
implications stated by Labajo (2020)

In addition, according to Espiritu (2022), moving forward, enhancing the profitability and sustainability of
jeepney drivers necessitates a multifaceted approach. Initiatives focused on incentivizing fleet
modernization and promoting collaboration among operators could help improve overall service quality
and profitability. By fostering a more conducive operating environment, stakeholders can work towards
ensuring the long-term viability of jeepney operations amidst evolving transportation dynamics in the
Philippines. Bautista & Mercado (2019) mentioned that the economic consequences of jeepney
competitions extend beyond operators to. While lower fares resulting from competition may benefit
passengers, they can strain operators' profit margins, limiting investments in vehicle maintenance and
fleet modernization. Consequently, this could lead to a decline in service quality, impacting commuter
satisfaction and overall usage of jeepneys as a mode of transportation (Labajo, 2020). Regulatory
challenges exacerbate the competitive landscape in the jeepney drivers. This regulatory ambiguity
contributes to market fragmentation, with numerous small-scale drivers for passengers along similar
routes, hindering profitability and sustainability within the drivers stated by De Guzman (2021).