ibis is one of the hospitality brands of the Accor Group, the same company behind Novotel in Araneta City, Fairmont in Makati (under Ayala group), Mövenpick in Cebu and in Boracay, and MGallery in Manila. 

Accor categorizes its Novotel brand as “midscale” and its ibis brand as “economy” or three-star. Worldwide, there are ibis hotels with a red logo, ibis Styles with a green logo, and ibis Budget with a blue logo.

The one in Araneta City is ibis Styles, the top ibis brand. Construction of the P2-billion, 15-story hotel started in January 2020. It will have 286 rooms or 22 rooms per floor when fully completed by the second half of 2024, employing around 200 people. It is expected to be half-completed by May.

Only its first five floors and its French restaurant, Le Bistro, are open for now. ibis Style’s front desk and Le Bistro are accessible via Gateway Mall 2’s fourth and fifth floors respectively, on the mall’s north side. When the mall is closed, guests can enter via the hotel’s ground floor entrance on the north side of Gateway 2. 

Although it’s considered “economy,” Rowell Recinto, senior management consultant of Araneta City, told Rappler on Tuesday, March 12 the hotel is “more a businessman’s hotel, more three-and-a-half [star].” 

ibis Styles’ room rate is around P3,000-plus a night if you book in March and April. Most of the other 3-star hotels in Quezon City have lower rates. 

In France and other parts of Europe, ibis is pronounced as eebees, but in the Philippines, it’s pronounced as ay-bis to avoid sounding like ipis, the Filipino word for cockroach. Many other countries outside Europe also pronounce it as ay-bis.

There are 675 ibis Styles hotels worldwide as of December 2023 with a total of 72,567 rooms. 

Each ibis Styles has a “unique and inspired theme” with a “photo spot” where guests can take photos and share them on social media. 

And since it’s in Araneta City, known worldwide for its Big Dome, now branded as Smart Araneta Coliseum, its photo spots are three big boxing-glove lounge chairs where people can sit or lie down for selfies.  

Araneta Coliseum is where the historic boxing bout between American boxers Muhammad Ali and Joe Frazier, dubbed “Thrilla in Manila,” was held on October 1, 1975. It’s considered one of the greatest boxing matches in the sport’s history with both boxers fighting a brutal match which Ali won. (READ: Pulling no punches: Carlos Padilla on refereeing the Thrilla in Manila)

The ground floor of the hotel has a red-and-white boxing-glove lounge chair with a black-and-white wallpaper of the boxing match in the background. At the fourth floor of ibis Styles, which is also its main lobby, are two brown-and-mocha boxing-glove lounge chairs with an artwork of the words “The Show Must Go On” placed on the wall in between the gloves, plus a gold-plated studio light beside the right glove. 

ibis Style’s restaurant, Le Bistro, with a patisserie, is now open daily for all-day dining. It serves French and European dishes such as French Onion Soup and crepes. 

ibis has six function rooms that can already be booked. Its roof deck will have an overhanging swimming pool as well as a bar where Metro Manila’s skyline will be visible. It is expected to open in the next couple of weeks, Recinto said.

The Accor Group says ibis is the world’s “leading economy brand” with a footprint of over 1,400 hotels globally, mostly in Europe. It has high brand awareness in France, Denmark, United Kingdom, Australia, and Britain. One of its flagships hotels is ibis Barcelona Center, which was inspired by the renowned Spanish architect and designer Antoni Gaudi. – Rappler.com

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Jollibee’s revenues reached a new high of P244.1 billion in 2023, a 15.2% increase from a year ago despite high inflation. This translated to a new record operating profit of P14.4 billion, a 45% increase from the same period a year ago.

System-wide sales (SWS), a measure of all sales to consumers, surpassed the P300-billion mark, growing by 16.3% to P345.3 billion.

Jollibee opened 658 new stores in 2023, bringing the total to 6,885, which is above the company’s guidance of up to 600 stores.

With record sales amid inflation, Jollibee is further expanding its brand internationally, as well as its coffee and tea business led by Coffee Bean and Tea Leaf (CBTL). It is also slated to “exponentially grow” in China.

These plans mean more returns for shareholders, with Jollibee aiming to triple net income in five years. Net income attributable to shareholders increased by 16% to P8.8 billion in 2023.

“Our full year 2023 results reflect the strength of our execution and resiliency of our brands,” said Jollibee CEO Ernesto Tanmantiong.

For 2024, Jollibee projects SWS growth to be between 10% to 14%. Meanwhile, capital expenditures could reach as much as P23 billion.

Blanco may claim that Chickenjoy may be “soggy” and “not that good,” and he even spat out the sweet Filipino-style spaghetti. But Jollibee’s numbers clearly show that more people disagree with his review.

He and girlfriend Selena Gomez will also likely see more of the restaurant too, as Jollibee aims to open as many as 750 new stores in 2024. – Rappler.com

The 77-year-old has led PLDT since 1998 and has been meaning to pass the baton for some time now. He already stepped down as the telco giant’s big boss in 2021, only to assume the post again in 2024 after his successor, Al Panlilio, resigned due to health reasons. 

In a recent press briefing, Pangilinan said that PLDT management is still in the process of looking for one, noting that the successor must have a sharp business sense. That person also needs to understand how the other businesses in the MVP group interact and relate with each other.

Pangilinan said they are careful about choosing the next person taking the helm, noting that this “long term decision will affect the company long term.”

“This is not just making an investment or buying an equipment, so no, it’s difficult because you have to look at the future in terms of the successor, I know that he should be younger than I am, much younger, should be steeped in IT, have an excellent business sense,” Pangilinan said.

“At the end of the day, it has to be somebody with a very good nose for business,” he added.

So far, sources said that management is looking at both insiders and outsiders for the role. They are even considering names that are not in the telco industry, but have experience in tech.

New digital entity

Pangilinan also noted that the successor must know about the other businesses under the MVP group, especially now that it recently formed a digital entity that will harness the data assets of the various companies in the conglomerate.

Digico, a collaboration co-owned by PLDT, Smart, the Manila Electric Company, and Metro Pacific Investments Corporation, will use a tech platform to “scale up and achieve seamless integration of services and capabilities.”

Pangilinan also detailed how Digico will consolidate the group’s multiple payment channels for a more seamless and secure experience for customers and businesses.

Innovation

The next CEO must also sustain PLDT’s profitability. In 2023, net income more than doubled to P26.6 billion, mainly due to a decline in expenses and stable top-line growth.

Revenues and core income posted just single-digit growth at 3%, which Pangilinan described as the telco industry’s “pain” in recent years.

“We’re stuck in terms of the growth story, so the telco that is able to develop the next great big idea to achieve escape velocity would be the winner,” Pangilinan said.

Will it be 5G, artificial intelligence, or internet of things that will bring elusive double-digit growth?

Those are some of the challenges that Pangilinan’s successor will have to face. – Rappler.com

In 2023, Maya’s total depositors stood at 3 million, 2.1x more year-on-year, while depositor balance was at P25 billion, a 1.7x improvement. Meanwhile, cumulative loans disbursed reached P22 billion, which is 6.9x more compared to the same period a year ago.

“We already have created that dent by providing a solution, an alternative for the many Filipinos who are unbanked, underbanked, and unhappily banked,” Maya chief executive officer and founder Orlando Vea said in a recent briefing.

On the enterprise side, Maya reported that it currently has 44% of the total market share of QRPH processing and is the largest merchant acquirer.

PLDT chairman and CEO Manny Pangilinan said the board was “quite pleased” with the subsidiary’s performance in the first two months of 2024.

Without specifying numbers, Pangilinan said Segment EBITDA (earnings before interest, taxes, depreciation, and amortization) at the operating level “turned positive.”

“There’s still the overhead, the debt to be taken into account, but the good news is, while it’s negative, it’s half of the EBITDA loss consolidated compared to last year. Even the net loss is more than half reduced. The cash burn is also more than half,” he said.

Pangilinan added that Maya has been able to attract significant deposits, but noted that the lending side of the business needs to grow more.

“I think the problem is not always the deposits, but the lending side. It’s the asset side of the balance sheet, that they have to push their loans. Because, I mean, banks are supposed to lend,” he said.

The Inquirer recently quoted Bangko Sentral ng Pilipinas Director Melchor Plabasan as saying that only two of the six digital banks in the country were profitable. – Rappler.com

Although Vita Coco Coconut Water is an American brand, it sources its coconut water from the Philippines and other countries in Southeast Asia. 

On Monday, March 11, billionaire Po family-led Century Pacific Food disclosed that it has entered into a new long-term contract with The Vita Coco Company to help meet the US brand’s need for 90 million liters of coconut water over the next five years. (READ: Century Pacific founder Ricardo Po Sr. dies at 90)

Century Pacific first entered into a partnership with Vita Coco in 2012 or over a decade ago, and has supplied it with its coconut water requirements.

As millions of consumers worldwide shift to healthier drinks, demand for coconut water has gone up, with both companies seeing a “significant increase in sales over the last decade.” 

Century Pacific said it has since become “one of the largest suppliers of Vita Coco, augmenting its capacity by 50% in 2022, to serve the brand’s growing needs.” 

It said the new agreement with Vita Coco will require a capital expenditure of $40 million, and is expected to create at least 1,500 jobs in manufacturing. 

It added that its previous agreement with Vita Coco was signed in 2020 and set for renewal in 2025. This new accord, Century Pacific said, is “incremental to the existing agreement.”

“The expansion of the multi-year agreement with Vita Coco conveys our mutual trust and respect for each other as business partners, a relationship built through consistency, collaboration, and excellence,” said Noel Tempongko Jr., vice president of Century Pacific’s Coconut OEM business. An OEM or Original Equipment Manufacturer business produces parts that another company needs. 

Tempongko said the new agreement will further support the  growth of the local coconut industry in the region. 

Jonathan Burth, chief operating officer of Vita Coco, said they “look forward to further solidifying our long-term partnership with Century Pacific.” 

“Our mutual ambition to serve consumers better with healthier products has taken us to new heights in innovation and quality. This agreement also creates an avenue by which we collaborate to make a positive impact on society and help build thriving communities among smallholder farmers in the Philippines,” Burth said. 

Century Pacific is now one of the Philippines’ biggest branded food companies. Its leading business is its tuna enterprise with its brands Century Tuna, 555, and sardines, especially after acquiring the Ligo brand in 2021. It is also in the meat business, producing canned goods such as Argentina Corned Beef and Meat Loaf. In 2001, it expanded into the canned milk market with its Angel and Birch Tree brands.

Second largest coconut producer

The Philippines is the second largest producer of coconuts in the world, and has around 2.5 million coconut farmers, many of them in Mindanao. 

Century Pacific said it works with local smallholder farmers, such as in General Santos City and in Sarangani province in central Mindanao, and creates market access for their products. 

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Other Vita Coco suppliers in Southeast Asia are Malaysia, Indonesia, and Thailand. In South America, Brazil is a supplier. 

Vita Coco says its products are made by picking and cracking the “best coconuts before extracting the coconut water.” 

It says coconut water is “clear, fat-free liquid,” low in calories and cholesterol-free, and “naturally rich in electrolytes, especially potassium.”

“Once extracted, we filter the coconut water and standardize the flavor profile by adding Vitamin C and 1% sugar,” its website says. The coconut water is then pasteurized and packaged before being shipped. 

Vita Coco is the number one coconut water brand in the US and the UK, with a market share of 50% and 75%, respectively, the company says.

Vita Coco says coconut water is becoming a “staple in the fridge of our core consumers,” and has become an alternative to “sugary sports drinks.” It estimates the “addressable” US retail market at over $30 billion. 

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Vita Coco started when its founders Michael Kirban and Ira Liran met two Brazilian women at a bar in New York City. When they asked the women what they missed most about Brazil, they said it was “agua de coco,” prompting Kirban and Liran to draw up a plan to bring coconut water to the US.

Global pop icons such as Madonna and Rihanna have endorsed Vita Coco. 

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Vita Coco had net sales of $494 million in 2023, up 15% from the year prior. It had a net income of $47 million in 2023 compared to $39 million in 2022. – Rappler.com

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The High Court ruling originated from NOW Telecom’s move in 2018 to sue NTC over what it described as “money-making schemes” in the bidding process.

The 15-page ruling by the Supreme Court’s 1st Division upheld a June 2021 Court of Appeals ruling which in turn affirmed a trial court decision in favor of NTC in October 2018.

Associate Justice Rodil Zalameda wrote the decision, with the concurrence of Chief Justice Alexander Gesmundo, and associate justices Ramon Paul Hernando, Ricardo Rosario and Jose Midas Marquez of the Court’s 1st Division.

Timeline

In October 2018, NOW Telecom filed a case against NTC with the Manila Regional Trial Court to challenge the multi-billion-peso fees that the agency required for interested bidders.

These fees included:

• P700 million participation security
• P14 to P24 billion performance security
• P10 million non-refundable appeal fee 

The company argued that such “barriers of entry” were “onerous, confiscatory, and potentially extortionary.”

In November of the same year, the trial court junked NOW Telecom’s plea for a writ of preliminary injunction due to mootness of the case, since the company still expressed its intention to participate in the bidding process.

NOW Telecom elevated the case to the Court of Appeals, which in June 2021 said that NTC’s Memorandum Circular (MC) No. 09-09-2018 – which contained the bidding guidelines – was valid and not anticompetitive.

How the SC ruled

The Supreme Court said that the guidelines imposed by NTC in its search for the country’s third telco player “were proper to ensure that only those with legal qualifications as well as financial and technical capabilities are allowed to participate and vie for the privilege to be the new major player.”

The High Court also agreed with the CA that the NTC memo in question cannot be stopped by the lower courts, in accordance with Republic Act No. 8975, which explicitly prohibits lower courts from issuing preliminary injunctions against the government to prohibit it from the bidding or awarding of infrastructure contracts.

The magistrates also said that the case is moot and academic since Mislatel, later renamed Dito Telecommunity, won in the bidding process.

“In this case, the act sought to be restrained by NOW Telecom has already been done. The actual implementation of the selection process of the [new major playor] pursuant to the subject circular, and the resulting assignment of the allocated radio frequencies for the [new major player] to Mislatel have rendered NOW Telecom’s prayer for injunctive relief moot and academic,” the SC explained.    

The court also said NOW Telecom failed to show it was compliant with the memorandum circular’s provisions, having been unable to form a consortium to meet the P10-billion capital requirement when it filed the complaint. – Rappler.com

But establishing a charging facility for EVs pose several challenges.

In a Business Sense episode, Mober CEO Dennis Ng enumerates the significant infrastructure costs, including the installation of charging stations, grid connection upgrades, and ongoing maintenance.

Ng said that companies thinking of shifting to EVs will really have to commit. – Rappler.com

The two institutions formally launched the PHINMA-DLSU Center for Business and Society (PDCBS) on Friday, March 8, in front of a crowd of business leaders and academics hopeful that making money can come alongside – or even come as a result of – doing good.

“Of course, there is that observation that capitalism has a bad name. Business is greed. Everything that business people are concerned about is making money, and they don’t care about what’s happening to society. I guess we’re trying to address that as well,” PHINMA chairman and chief executive officer Ramon del Rosario Jr. said on Friday.

“If we want a better society, we need to do our part,” he said. “You can see from the audience there – top people in the companies – you can see that they are enthusiastic about this.”

So what exactly does the PDCBS intend to do? DLSU president Brother Bernard Oca, FSC, said that the research center could bring businesses and the academe together by sharing data and best practices, and by building future business leaders who think “for the common good, not just for profit.”

In particular, the center will develop tools, materials, and “Filipino teaching cases” to enhance the curriculum of DLSU’s Ramon V. del Rosario College of Business, initially. This will be eventually disseminated to other PHINMA schools, followed by the general business school community. The center will also produce publications, conferences, and discussion groups centered on the idea of using business as a force for good.

The center will get its seed money from a P50-million donation from PHINMA and Del Rosario’s family, an amount that the chairman admitted was “somewhat modest.” More funding could flow in from research grants and other “multilateral agencies who like this idea.”

Time for business to do its part

For Patrick Aure, director of the PDCBS, it’s time for business to go beyond merely making as much money as possible. This shift has to start with the way business is taught to students who could one day become the country’s next leaders.

“When I was an undergrad, puro (it’s all about) profit maximization,” Aure told Rappler. “But there’s already a paradigm shift that top business people in the industry are recognizing business is not just for profit. More importantly, it is for society.”

Aure said that a business aiming to do good has to go beyond corporate social responsibility (CSR) programs that can just be “dispensable.” Instead, Aure emphasized that doing good has to be embedded in the business model. A good example is how some social enterprises “co-create” products with a community instead of pumping out products to replace them. (READ: 5 fashion social enterprises empowering indigenous communities)

“‘Yung mga examples of indigenous products that are being marketed in the mainstream market, ‘yun ‘yung mga opportunities na the business co-creates with the community, instead na nilalamon lang ng whatever mass-produced products we have,” Aure told Rappler.

(Those examples of indigenous products that are being marketed in the mainstream market are opportunities for the business to co-create with the community, rather than the community being eaten up by whatever mass-produced products we have.)

Aure also believes there are “difficult conversations” to be had with businesses in industries that are inherently destructive, like mining. This can center around how to minimize the harm from externalities, which are costs borne by society rather than the business.

For instance, Aure said we should ask: If something is bad for the environment, can we stop doing it and think of another innovative business model? If the business is already existing, the next question is: How do we reduce harm?

“It will be a long cycle. It’s a very difficult conversation. But I’d like to focus my efforts on more innovative business models. When there are business models that are being formed together with communities, you can disrupt industries,” Aure told Rappler. – Rappler.com

Southeast Asia’s first brewery – La Fabrica de Cerveza de San Miguel – was established in the Philippines in 1890 or 134 years ago, an enterprise that became San Miguel Corporation (SMC) in 1964. 

SMC’s successful beer business became the foundation for ventures into a diverse line of food products, starting with Magnolia Ice Cream in 1925 or 99 years ago. 

Today, San Miguel Food and Beverage Incorporated (SMFB) is the Philippines’ most diversified food company and one of its largest. 

There’s probably no household in the Philippines that doesn’t have a San Miguel product in its refrigerator or pantry. 

In 2023, SMFB earned a “record profit” of P38 billion, its highest since the company consolidated its beer, food, and spirits (gin) business units six years ago. (READ: San Miguel nets P43.2 billion in 2022)

Calling its 2023 financial results “extraordinary,” SMFB president and CEO Ramon Ang on Thursday, March 7, thanked its “loyal customers” for supporting the company as it navigated the “year’s challenges.”

Here is SMFB’s diverse product portfolio: 

Beer and non-alcoholic beverages

San Miguel Brewery is the Philippines’ largest producer of beer. According to the company, its nine main beer brands have “an aggregate market share of 92.4%.” These brands and sub-brands are: 

In 2023, SMFB’s Beer division had an 8% increase in consolidated sales to P147.3 billion, which it said was “fueled by higher demand in both local and international markets.” However, domestic sales volumes were still 25% below pre-pandemic levels, the company said.

International revenues from its beer business went up 7% in 2023, while net income reached P25.3 billion. 

SMFB said this was “propelled by strong demand for San Miguel’s global brands, such as Red Horse, leading to significant growth in regions like South China, Thailand, and through exports.”

Ginebra San Miguel Incorporated

Ginebra San Miguel, best known for its beloved Philippine basketball team Barangay Ginebra, is the world’s largest gin producer by volume, according to SMFB. It is also the Philippines’ leading hard liquor brand.

In 2023, SMFB’s spirits division reported revenues of P53.6 billion, up by 13% from 2022. Net income reached P7 billion. 

Its main products are: 

Ginebra San Miguel has five bottling plants: Cabuyao, Laguna; Cauayan City, Isabela; Ligao City, Albay; and Mandaue City, Cebu. 

Food division

SMFB’s food division reported revenues of P178.8 billion in 2023, up by 2% increase from the year prior. 

Its diverse products range from frozen meats, butter, cheese, margarine, ice cream, flour-based products, and pet and aquatic feeds. It also breeds, grows, processes, and markets basic meats such as chicken and beef.

Purefoods-Hormel Company Incorporated

SMC bought Pure Foods Corporation in 2001 and renamed it San Miguel Pure Foods Company. It put up a joint venture with Hormel Foods International – Purefoods-Hormel Company Incorporated (PHC) – which produces processed meats refrigerated and in cans.

PHC currently dominates the Philippines’ hotdog and nuggets market with its Purefoods Tender Juicy and Purefoods Nuggets brand. 

Its other major products are: 

PHC is also the exclusive distributor of Hormel’s SPAM and Skippy Peanut Butter. 

With many heads of families now too busy to prepare food at home, the market for frozen ready-to-eat meals has grown. Among the frozen products the company sells are: Purefoods Beef Bulalo, Beef Kaldereta, Beef Pares, Bistek Tagalog, Kare-Kare, and Chicken Afritada. 

SMC ventured into meat-free products in 2020 with the launch of Veega, a plant-based protein food. Among the Veega products are: tapa, sausage, giniling, meat balls, burger patty, nuggets, tocino, adobo flaks, and garlic balls.

Dairy

In 1990, SMFB’s parent firm SMC acquired the brands Star and Dari Creme. In 2004, San Miguel Purefoods relaunched Magnolia milk and ice cream. Here are some of the company’s dairy products:

Butter

• Star Margarine (several flavors)
• Dari Creme
• Magnolia Gold Butter
• Magnolia Baker’s Best
• Magnolia Butter-licious
• Magnolia Buttercup

Milk and cream

• Magnolia Chocolait
• Magnolia Full Cream Milk
• Magnolia Fresh Milk
• Magnolia Non-Fat Milk
• Magnolia Low-Fat Milk
• Magnolia All-Purpose Cream

Cheese

• Magnolia Cheezee
• Magnolia Cheddar
• Magnolia Quickmelt
• Magnolia Quezo de Bola

Baking

• Magnolia All-Purpose Flour
• Magnolia Pancake
• Magnolia cake mixes

Spread

• Magnolia Real Mayonnaise
• Magnolia Sandwich Spread

Ice cream

• Magnolia Gold Label ice cream (various flavors) 

Magnolia Incorporated

SMFB’s poultry business is under San Miguel Foods Incorporated (SMFI). The poultry venture started in 1972 with its first breeder farm in Cavite. The following year, the first Magnolia Fresh Chicken was produced by its first chicken processing plant in Muntinlupa.

Despite the continuing problem with the African swine fever affecting supply as well as competition from imported frozen chicken, SMFB said its poultry business still managed a net income of P6.6 billion in 2023. It said this exceeded pre-pandemic figures. 

SMFB has major investments in Philippine agro-industry, particularly in commercial feeds, poultry, pork, and beef. Its main brands are Magnolia Fresh Chicken and Monterey for pork and beef. 

SMFI has third-party suppliers that grow chicks, hogs, and cattle. SMFI provides the chicks, pigs, feed, vet meds, and technical support. The contract partner provides the land, labor, and security. SMFI has a network of over 100 breeder farms for chicken contract farming. 

The Magnolia brands cover the following products: 

• Magnolia Whole Chicken (Chicken Big Bird; Free Range Chicken, Fresh Chicken)
• Magnolia cut-ups (various)
• Magnolia Cage-Free Brown Eggs
• Magnolia Ready-to-Cook Timplados (fried chicken, tocino, chicken longanisa, chicken wings, chicken bbq, chicken fingers, etc.)

Coffee business

SMC ventured into the coffee industry in 2005 with a joint venture with Super Coffeemix Manufacturing Limited. Its San Miguel Super Coffee Mix has various flavors: Original, Sugar-free, Barako, and Crema Barako.

Protein and animal nutrition, etc

SMC’s lesser-known ventures are in feeds, flour, bakery ingredients, and pet food and animal care:

• Feeds: B-Meg Feeds
• Animal Health Care: Veterinary medicines such as Protect Plus
• Pet Care: Nutri Chunks dog food
• Flour: San Miguel Mills flour (All-Purpose Flour, Cake Flour, Wheat Flour)
• Premixes and Bakery Ingredients: Best Bake Butter Cake Mix, Baking Powder, Pan de Sal mix

SMC also has Great Food Solutions, a food-service arm of San Miguel Foods that sells ready-to-cook and ready-to-eat products under the brands Chef’s Selection and Cook Express to institutional clients.

“San Miguel Food and Beverage (SMFB) closed 2023 with extraordinary financial results, achieving its highest net income since 2018, when we first consolidated our Beer, Food, and Spirits businesses,” Ang said in his press statement.

Below is a history of SMC as narrated by historian Ambeth Ocampo, who says San Miguel is “now part of Filipino identity.”

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– Rappler.com

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“There’s a myth, there’s a mindset gap…. Well, it’s partially true,” said Ng, CEO of Mober, a logistics company with a fleet of EVs. 

In terms of operating expenses, an EV truck’s cost per delivery per kilometer is just P2, as compared to a diesel-run truck which costs between P12 to P14.

The cost of buying a truck that runs purely on electricity, however, costs almost twice as much as a regular truck that runs on fossil fuel. An EV truck could cost over P3 million, while a diesel-run truck costs P1.7 million. 

“When we offer our services, we have the same rates [with the diesel-run trucks], but we never ask for a premium,” Ng said in an episode of Business Sense.

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Charging EVs is another challenge altogether. 

Setting up Mober’s charging yard required asking the Manila Electric Company to install a new transformer. Each charger also needs a circuit breaker. Beyond the infrastructure, the problem was mostly paperwork.

With these challenges, Ng said that companies thinking of shifting to EVs will really have to commit.

“Transitioning to EV is not like just tokenization. It’s a commitment,” Ng said.

Opportunities

Ng sees more EVs in logistics, rather than those owned by ordinary car owners, plying the roads of Metro Manila in the coming years, as big companies pursue sustainability goals.

Mober’s client, Ikea, is aiming to be climate positive by 2030. Its more near-term goal is to reach zero emissions for deliveries by 2025. So far, Mober is the only startup offering EV delivery services. 

With Mober, companies like Ikea need not buy their own EVs or shell out cash for charging stations to achieve their sustainability goals.

In anticipation of more clients opting to shift to EVs, Mober is expanding its EV fleet. It recently raised $2 million in a seed funding round led by RT Heptagon Holdings. They are also moving to a bigger charging yard somewhere in Pasay City to accommodate more EV trucks and vans.

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Perks needed

The Philippine government is offering some perks to encourage people to shift to EVs, including zero tariffs for imports and coding exemptions. But the industry needs more.

Ng said that logistics companies must be incentivized to shift to EVs, especially since they can absorb the expenses needed to run purely on electricity. 

“On the consumer side, the main problem is range anxiety. What if I wanted to go to Baguio, is there a charger there? That’s one thing that’s stopping everybody from shifting to EV,” Ng said.

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But for vehicles in the supply chain, schedule and distance are carefully put into consideration, making it easier to schedule charging time, and effectively erasing range anxiety.

Companies also have the ability to spend on charging stations. For instance, Mober is looking at delivering all the way to Bicol and is considering setting up charging stations, one per 100 kilometers.

Government agencies and regulations will also need to catch up. Ng is lobbying for a temporary truck ban exemption for their six-wheelers to encourage other logistics companies to shift to EVs as well.

“If we really want to shift to EVs, I think logistics is the best area to start,” he said. – Rappler.com