Jeepney or Jeeps are one of the Filipinos’ popular public transportations in

the Philippines. It originated from the American’s auto calesas which existed in the

1930s as cheap passenger utility vehicles in Manila. Since then, Jeepney or Jeeps

became known as the “Hari ng Kalsada” as they were the most used public

transportation in the Philippines and can be seen in every corner of the streets.

After existing for more than 90 years, Jeepneys are facing a nationwide phaseout

due to the demands of ever-changing advancement and technology as well as to

address transport related problems through various projects such as the Public Utility

Vehicle Modernization Program.

The Public Utility Vehicle Modernization Program or PUVMP aims to modernize

and unify the fragmented PUV industry and to upgrade or replace PUVs that are

older than 15 years to comply with environmental and safety standards. To continue

operations, individual PUB operators must consolidate into a transport corporation or

cooperative by joining an existing entity or creating a new one with at least 15 PUV

operators. The Public Utility Vehicle Modernization Program will lead to the

replacement of over 250,000 units of Jeep into the new and modern Jeepney which

are often called E-Jeeps, Mini-bus, Shuttle or simply modernized jeepney. These

modernized jeepneys are believed to be less harmful and less hazardous compared

to the traditional jeepney which often uses second-hand engines which have higher

emissions than modern diesel technologies. While the Public Utility Vehicle

Modernization Program launched by the Department of Transportation was deemed

to be more reasonable to lessen the air pollution due to emissions of traditional

jeepney, most jeepney owners and drivers, as well as most citizens deemed it as

anti-poor movement.
 The Jeepney Drivers, which use their jeepneys to transport 20-30
passengers, depending on the length of their jeepneys, had already experienced
various challenges even before the Public Utility Vehicle Modernization Program was
published. In one of the interviews of Inquirer from a 40-year-old jeepney driver
in March 2022, it was stated that they only make a net income of 250 pesos daily.
In order to gain 250 pesos daily, they need to make five (5) round trips a day,
making 450 pesos to 500 pesos per trip which is equivalent to 2,250 to 2,500 pesos
a day. However, after deducting meals and gasoline they only left 50 pesos per trip
which is equivalent to 250 pesos. On another statement from Manila Standard on
January 2023, public utility jeepney drivers are only now able to take home from
300 pesos to 400 pesos of their daily income to their families, a transport group
said on Sunday. Mody Floranda, a national president of Pinakaisang Samahan ng mga
Tsuper at Operator Nationwide or PISTON, expressed this in an interview on radio
dzBB, saying their daily income is far from the estimated family living wage of
around 1,100 pesos. This is then because of the almost monthly increase in gas and
oil prices and the sudden inflation of the goods and necessities. This represents that
the income of Traditional Jeepney drivers have been far enough for supporting their
family because of the oil and gasoline prices, as well as to the boundary that they
are paying.

Another Statement from JamesDeakin.ph in November 2017, under the

current system the average gross revenue of a jeepney driver would be around 4,000
pesos a day. Take away about 1,000 pesos for fuel, 600 pesos for operator boundary
or driver salary, and maintenance cost racking up 400. The driver would then be left
with 2,000 pesos, working roughly 16 to 18 hours a day. Within this statement, it
shows that fixed cost will amount to 600 pesos daily while variable cost can go up
to 1,400 pesos for 16-18 hours of working. If we are going to create a break even
analysis with this data, If we assume that they created at most 8 trips in where
they gain up to 500 peso per trip, and if we assume that jeepney drivers uses at
least 1,000 pesos worth of gasoline a day, we can conclude that the contribution
margin per trip on November 2017 would be at least 325 pesos in where 125 pesos
would be put for gas and another 50 pesos for maintenance. With the given input,
we can compute the Break Even Point of Jeepney Drivers in November 2017 by
dividing their total fixed cost to contribution margin which then results in 3.07 or
3-4 trips for jeepney drivers to reach a break-even point. Based on this perspective,
as an investor it should be worthwhile if the jeepney drivers can get up to 6-8 trips
daily excluding their physical situation. However, the reality is always much harsher.
With the current situation of the economy nowadays, as well as the climate change,
it would be impossible for jeepney drivers to take up to 6 and above trips as the
immense heat during noon ranging from 11 am up to 3pm will gradually consume their
strength and increase their fatigue. Thus, it would be ideally a good investment but
with the economy we are having right now, it will only create more variable and risk
to invest in the traditional jeepney as it harbors more maintenance fee because of
as an investor it should be worthwhile if the jeepney drivers can get up to 6-8 trips
daily excluding their physical situation. However, the reality is always much harsher.
With the current situation of the economy nowadays, as well as the climate change,
it would be impossible for jeepney drivers to take up to 6 and above trips as the
immense heat during noon ranging from 11 am up to 3pm will gradually consume their
strength and increase their fatigue. Thus, it would be ideally a good investment but
with the economy we are having right now, it will only create more variable and risk
to invest in the traditional jeepney as it harbors more maintenance fee because of
the usage of old model, second hand engines and especially the risk it provides to
the environment and safety of commuters.

Looking back, the Public Utility Vehicle Modernization Program or PUVMP were
first introduced by the Department of Transportation in 2017 with the goal of
making the country’s public transportation system efficient and environmentally
friendly by 2020. The program calls for the phasing-out of jeepneys, buses and
other Public Utility Vehicles (PUVs) that are at least 15 years old and replacing them
with safer, more comfortable and more environmentally-friendly alternatives over
the next three years. Replacement vehicles are required to have at least a Euro 4-
compliant engine or an electric engine to lessen pollution. Some proposed requirements
include CCTV cameras, an automated fare collection system, speed limiters and GPS
monitors.The Land Bank of the Philippines estimates that each jeepney replacement
will cost around ₱1.4 million to ₱1.6 million.[4] However, based on an interest rate
of 6% per annum and a payment period of 7 years, the actual cost of a jeepney
reaches ₱2.1 million. It was almost 6 years since it was first introduced however,
based on the recent situation the deadline of phasing out of jeepneys was moved
from June 30, 2023 into December 31, 2023. When it comes to whether they
planned or underwent proper procedures for the current changes that will happen
after the Public Utility Vehicle Modernization Program, no one can actually perceive
their plans. For 6 years, nothing has changed as if they did not even plan for what
will happen to the common people who will be extremely affected by the decision
that they are planning to make. The jeepney drivers who were striving to survive
and provide for their families will experience more obstacles as in order for them to
afford the modern jeepney that the government requires, they need 1,776.7% of
what they need to afford a traditional Jeepney. A price of a traditional jeepney
cost around 150,000 to 250,000 pesos. On the other hand, the modernized jeepney
that the government wants the jeepney drivers to use cost up to 2.8 million pesos.
This is not a small price that simple jeepney drivers can afford. Even the small
jeepney operators will have a hard time to afford the huge amount of money
necessary to buy the modernized jeepney.
that the government wants the jeepney drivers to use cost up to 2.8 million pesos.
This is not a small price that simple jeepney drivers can afford. Even the small
jeepney operators will have a hard time to afford the huge amount of money
necessary to buy the modernized jeepney.

Based on the news articles that are recently released, it does seem like that
the Public Utility Vehicle Modernization Program does not consider the people who
will be affected if this project was made. They might only be considered to be on
par to other countries when it comes to the transportation system by upgrading the
public utility vehicles that the citizens of the Philippines will use. However, they lack
something that most citizens saw, which is to consider what will happen to the
traditional jeepney drivers. Currently there are more or less 250,000 units of
jeepney in the Philippines, if those jeepneys are phased out, there will be an
estimated 250,000 or more people who will lost their jobs as jeepney drivers.
Although the Philippine Government is willing to provide a subsidy of 360,000 pesos
to buy the modernized jeepney. However, comparing it to the actual price of one
modernized jeepney which costs as much as 2.8 million pesos, it will be nothing less
than 12% of the actual price. This means that the Philippine Government actually
disregards the financial capabilities of the Jeepney drivers and operators when it
comes to deciding whether they can provide the amount of buying the modernized
jeepney or not. Thus, it can be considered as an anti-poor project of the Department
of Transportation as well as the Land Transportation Franchising and Regulatory
Board.

Analyzing and Criticizing the Public Utility Vehicle Modernization Program we

can assume that it does not only provide harm to the stakeholders. In some way, we
can also assure that this project or program led by the Department of Transportation
also provides benefits especially when it comes to the Philippine Economy. First, the
Public Utility Vehicle Modernization Program provides a higher job demand for the
transport sector. As the new modernized jeepney is in demand because of the Public
Utility Vehicle Modernization Program, there is also a need for workers and laborers
in vehicle manufacturing. It also means that there is a potential raise in need for
skilled drivers and operators to manage the modernized jeepney. Another benefit of
the Public Utility Vehicle Modernization Program is it will help lessen the carbon
emission. It was stated that 15% of air pollution came from traditional jeepneys.
With the help of the modernized jeepney, it can help lessen the carbon emission as
it uses less gasoline, as well as it will be a new unit meaning less carbon emission.
it uses less gasoline, as well as it will be a new unit meaning less carbon
emission. However, we should not always look on the benefits provided by a certain
project, we should also assess the negative effect that the Public Utility Vehicle
Modernization Program will bring. First, the most debatable topic nowadays, high
cost. As far as we all know, the modernized jeepney cost 2.8 million pesos compared
to the traditional jeepney that only amounts to 150,000 to 250,000 pesos. This is
a huge increase in the expense for jeepney drivers and operators. Currently, small
jeepney operators will have a hard time producing such an amount of money to afford
a modernized jeepney. This humongous amount will only buderned the jeepney drivers
as well as jeepney operators and probably sink them into debt. Another is it will
cost a lack of Jeepneys. As jeepneys became the national public vehicle of the
Philippines, a phased out of Jeepney will result in a lack of public vehicles that the
commuters can use. Although there have been a steady amount of modernized
jeepneys nowadays, it can not be enough for the thousands of commuters within a
day. Lastly, with the continuation of the traditional Jeepneys, there will be a
minimum change in the environmental impact, as well as minimal traffic congestion
difference. As we all know, the carbon emission of the jeepney is one of the primary
contributors of air pollution and one of the main violators of Clean Air Act. These
Jeepneys are also responsible for the traffic congestion as they use old models and
engines which are prone to malfunction.

Looking at all the information available about the Public Utility Vehicle
Modernization Program as an investor, I can guarantee that this is something that
is not enough to improve the transportation problem or to be specific, the traffic
congestion here in the country. Although in the long run, it will certainly help in
lessening the carbon emission from public transportation, but that is not enough.
First looking at the perspective of an investor, the requisite that public utility vehicle
that is 15 years old shall be replaced is not a simple matter. What it means is that
every 15 years, you should save up to 2.8 million pesos to buy another modernized
jeepney excluding the inflation and interest rate. Another matter is that with the
changes of the economy and technology advancement, there will surely be another
sort of public utility that will emerge, by then what will happen to the modernized
jeepney will be the same to what is happening on traditional jeepneys. The risk
presented in this kind of investment is too high as the political situation for
transportation is not stable. There are projects for the transportation sector that
are currently in progress yet are too slow to progress. Another is that, when it
comes to the contributor of carbon emission, jeepneys only compose 15% of the total
carbon emissions, what it means is there are private vehicles that may be the primary
contributor of carbon emissions. Which also means that instead of letting the public
utility vehicle to improve or upgrade their vehicles, they should as well insist the
private vehicles to improve or upgrade their vehicles as they have the capabilities to
purchase private cars, they should also have the means to avail upgrades for their
private vehicles. Also, embracing the advancement of technology is a must in order
to be on par with other countries, we should also first analyze whether it is a win-
comes to the contributor of carbon emission, jeepneys only compose 15% of the total
carbon emissions, what it means is there are private vehicles that may be the primary
contributor of carbon emissions. Which also means that instead of letting the public
utility vehicle to improve or upgrade their vehicles, they should as well insist the
private vehicles to improve or upgrade their vehicles as they have the capabilities to
purchase private cars, they should also have the means to avail upgrades for their
private vehicles. Also, embracing the advancement of technology is a must in order
to be on par with other countries, we should also first analyze whether it is a win-
win situation for both the government and the stakeholders. As an investor, instead
of investing in the phasing out of jeepneys, it would be better to upgrade the current
jeepneys to be on par with the existing technology. A technology that is on par in
world-wide scale yet affordable for individuals. That would be the ideal way to
improve the transportation system. Also pertaining to the traffic congestion, I
believe that public utility vehicles are not the reason why the traffic is too slow,
but instead of the numerous private vehicles that occupy most of the road. Road
widening is not even the proper approach for this traffic congestion but a better
and improved public utility vehicle. If there are public utility vehicle that is
accessible, efficient, eco-friendly, affordable and updated to the latest technology,
that is something that is worth investing for.

References:

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https://en.wikipedia.org/wiki/Jeepney#:~:text=Jeepneys%20originate%20fro
m%20the%20American,passenger%20utility%20vehicles%20in%20Manila.

Viado, M. V. (2023, March 6). What you need to know about the proposed jeepney
modernization. PIA. https://pia.gov.ph/news/2023/03/06/what-you-need-
to-know-about-the-proposed-jeepney-modernization

Asia Pacific Foundation of Canada. (2023, March 8). Jeepneys, backbone of public
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backbone-public-transport-philippines-
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https://jamesdeakin.ph/blog/so-how-much-can-average-jeepney-driver-take-
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Gerald. (2017, November 27). James Deakin. So How Much Can an Average Jeepney
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program#:~:text=Under%20the%20current%20system%20the,to%2018%20ho
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Reyes, D. (2022, March 19). Jeepney driver forced to have a second job, set for
a third. INQUIRER.net. https://newsinfo.inquirer.net/1570424/jeepney-
driver-forced-to-have-a-second-job-set-for-a-third

Manila Standard. (2023, January 29). Jeepney drivers’ daily takehome income drops
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takehome-income-drops-to-p300.html

Grecia, L. (2023, March 10). Explainer: The PUV Modernization Program in a

Nutshell. https://www.topgear.com.ph.
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Chanco, B. (2023, March 9). Jeepney modernization. Philstar.com.

https://www.philstar.com/business/2023/03/10/2250491/jeepney-
modernization#:~:text=To%20get%20a%20loan%20from,8%20million.

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