Case Study 2.1

Patricia Capili
ABM 12-1
Being a marketing student, I am in favor in”Jeepney modernization program” to reduce

fatal accidents, the government considered replacing old and poorly maintained cars, and eliminating
outdated jeepneys on the streets which were expected to help tackle environmental pollution.
Firstly, the Philippines have a lot of traffic overlapping in terms of routes, concessions, and
services. This caused classic congestion in our country, Secondly jeepneys are used by the Filipinos for
personal purposes. Initially, these vehicles were used as air transport vehicles or long-distance vehicles.
However, many people have turned it into public transport, and charge a small fee when a passenger
travels a particular route. In addition, many owners crammed with customers in excess of the permitted
number (exceeding 26 people). The design of the jeepney is quite inconvenient and small. The rows of
seats are arranged to face each other, making it difficult to stand upright. Therefore, moving and
carrying customers is not safe. Finally, because of the franchise, it's challenging to track how many
vehicles are running the same route or counterfeit franchises.
Basically, the program aims at helping workers to have safe, comfortable and
environmentally-friendly transportation. It includes, Reduce pollution, Most people use public transport
to get around. Therefore, the modernization of jeepneys helps to reduce harmful smoke and dust into
the environment. The government has policies to help them "greener" and create conditions for a clean
air environment. Second, Improve public safety , the Jeepneys program ensures people safety by two
important things ; CCTV and GPS are installed on new jeepney models and the driver is more well-
trained and disciplined, next is the Improve punctuality ,the Philippines is famous for its traffic
congestion. However, thanks to this program, people will be informed in advance of the schedule of
routes, which helps to travel faster and avoid congestion lastly the Enhance comfort, another jeepney
modernization advantage is that it brings significant improvements to the jeepney’s comfort features.
For example, the jeepneys will come equipped with larger storage space, and the doors are placed on
the sidelines, which are also safer and more convenient for parking.
The solutions to lessen the burdens of drivers are:
Provide new job opportunities, while it cannot be denied that the modernization of public transport
will gravely affect individual and small-time jeepney operators and owners, it will pave the way to the
car manufacturing industry in the Philippines that will create more jobs. One of the long-term goals of
the jeepney modernization project is to bring the vehicle manufacturing industry into the country. This is
however not yet set in stone and might not push through, as it’s still being negotiated by the
government with vehicle manufacturers.
Gradually solve traffic condition, according to the study conducted in 2016 by Japan International
Cooperation Agency (JICA), traffic in the Philippines cost ₱2.4 billion daily to the economy and by 2030 it
will peak at ₱6 billion daily if left unsolved. With the government having full control of the PUV routes, it
will be easier to decongest roads and plan routes that will minimize traffic conditions in highly saturated
areas.
Increase base fare, The modernization of public vehicles will lead to higher base fare, from ₱8 to ₱12.
This can be an added burden to the day-to-day expenses of commuters but could result in higher
income for drivers and operators. While the other transportation options like buses and TNVS are still
likely to retain their current fare rates, jeepney, on the other hand, is most likely to increase.
For jeepney drivers who are merely renting out their jeeps, they will be getting a standard
income preset by the government. They don’t have to worry about the monthly amortization of the new
jeepneys. At the end of the day, the jeepney operators are mandated to provide them a regular income,
not affected by how much the driver is earning per day.
The burden, on the other hand, will be shouldered by the operator who runs a franchise of
PUV. The monthly amortization will be a huge financial challenge since each unit despite having a low
APR and flexible payment term carries a huge price tag. Almost all the drivers and small business
operators cannot afford to franchise the new vehicles.

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Patricia Capili

Being a marketing student, I am in favor in”Jeepney modernization program” to reduce

The solutions to lessen the burdens of drivers are:

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