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Catalyzing New Mobility in Cities: The Case of Metro Manila Ateneo Center for Social Entrepreneurship (ACSEnt) Ateneo School of Government, Pacifico Ortiz Hall Ateneo de Manila University September 4, 2012 with generous support from

Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

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Page 1: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Catalyzing New Mobility in Cities:

The Case of Metro Manila

Ateneo Center for Social Entrepreneurship (ACSEnt)

Ateneo School of Government, Pacifico Ortiz HallAteneo de Manila University

September 4, 2012

with generous support from

Page 2: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Typology of Business, Social Enterprise and Social Innovation Models for Inclusive

Mobility in Metro Manila

Page 3: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

• UK Disability Discrimination Act of 1995: right of disabled people to goods, facilities, and services including transport.

• Integrated Transport Planning (ITP): Mobility for All

• UK’s Inclusive Mobility Guide for better access to pedestrian and transport infrastructure

Evolving Concepts of Inclusive Mobility

Page 4: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

• Walk 21: the right to accessible streets, squares, buildings and public transport systems regardless of their age, ability, gender, income level, language, ethnic, cultural or religious background, strengthening the freedom and autonomy of all people, and contributing to social inclusion, solidarity and democracy

Evolving Concepts of Inclusive Mobility

Page 5: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

• Stockholm: Participative transport city planning

• City of Stuttgart, Germany: capacity of participate in the labour market or reach work places efficiently -- at reasonable cost and time

Evolving Concepts of Inclusive Mobility

Page 6: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

• Cities for Mobility Initiative: socially inclusive mobility for all including disabled, parents with small children, the sick and poorer people

Evolving Concepts of Inclusive Mobility

Page 7: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Evolving Concepts of Inclusive Mobility

Inclusive Mobility Philippines: • A transport system that works for the poor and vulnerable

• A walkable, bike-able, accessible city

• Moving people and not vehicles

• Mobility with safety and civility

• Clean air, clean streets, clean vehicles, clean facilities,

• Planning and communicating better traveling less

• Sharing information to increase connectivity and accessibility

• Making neighborhoods more accessible to the rest of the city

• Changing mindsets and behaviors – the authorities’ as well as other

• Mobility of all , by all, for all

Page 8: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Research Goals & Objectives

• Mobility challenges of the poor and vulnerable sectors;

• Existing/emerging transport/mobility related businessinnovations and social enterprises that take intoconsideration the principles of:

– Sustainable inclusive mobility benefitting the poor andthe vulnerable

– Scalability and replication

• Market barriers and enablers :

o Policy

o Economics

o Socio-Cultural

Page 9: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Research Questions

1. What are the mobility challenges of the poor and the vulnerable sectors?

2. What are the existing/emerging business and social enterprise models in the transport and mobility sector that supports inclusive mobility? Do they effectively benefit the poor and vulnerable?

3. What are the barriers and enablers to implementation, replication and scaling up inclusive mobility innovations?

Page 10: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

State of Transportation in Metro Manila

• Market Analysis

– Private motor vehicles contributes to 53.2% of all traffic composition but caters only to 21.6 of transport demand

• Economics

– Incurred losses of P140-B annually due to wastage of fuel and loss of productivity.

• Infrastructural

– Absence of proper road infrastructures.

– Commercial developments placed along major roads creating bottlenecks.

Page 11: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

State of Transportation in Metro Manila

• Health and Safety

– Increasing road safety issues – accidents, casualties, deaths

• Environment

– Road congestion due to increase in number of private cars contribute to air pollution

– Road transport GHG emissions: 253,613 tons CO2e (Makati City alone, base year 2010)

Page 12: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Mobility Challenges of the Poor and the Vulnerable Sectors

Cost (Poor)

– No choice/alternative modes, Need-basis

– Public transportation is cheapest

Cost (Vulnerable)

– Affordability depends on the economic standing of the person

– Limited incentives (discounts) for vulnerable groups – e.g. PWDs

Page 13: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Mobility Challenges of the Poor and the Vulnerable Sectors

Length of travel (Poor)

– Attributed to long travel hours

– The poor do not have alternatives with regards to their travel routes

Length of travel (Vulnerable)

– Even more problematic due to their constraints (e.g. physical) – limited travel options

– Longer travel time: lack of facility to aid their mobility

Page 14: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Mobility Challenges of the Poor and the Vulnerable Sectors

Challenges in terms of access to basic goods and

Services

– Not due to lack of transport modes, but in terms of the cost of goods itself (indirect influence due to cost of transport)

Page 15: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Framework for Business and Social Enterprise Models for Inclusive Mobility

Page 16: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Framework for Analyzing Inclusive

Mobility Models

Inclusive Mobility Business Models

(Travel and transport-related options

benefiting the poor and vulnerable:

Human security, Well-being,

Vulnerability reduction

Education

Environmental sustainability

Gender equality and equity

Decent Work

Increase income

Mobility-related –behaviors: restroom stops; Coffee, water or food stops; Shopping stops; Communication stops (for those who may not have cellphones); Utility bills payment stops; Socializing stops (meeting friends); Spiritual stops (i.e many stop at the EDSA shrine or Quiapo Church to pray before the proceed to wherever they want to go); Others

Sectors:Telecommunications and wireless, e-business and new media, information technology, tourism and retail, transportation operations and services, goods movement and supply chain management, intelligent transportation systems, real estate, construction, planning and operations, geomatics, financial services, banking and investment, transportation equipment, clean energy

Urban Infrastructure on transportation: Transportation conduits such as:Streets and highways; integrated transportation systems; new services, products, transport modes, technologies, and designs.

Value proposition, target customer, distribution channel, relationship, value configuration, core competency, partner network, cost structure, revenue model

Page 17: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Assessing Business, Social Innovation and Social Enterprise Models for Inclusive Mobility

Two major levels of analyses

(1) In what way the transport service benefits the poor / vulnerable sector

(2) Examines the elements of the business model

Page 18: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Analytical Tool: LEVEL 1

Transport-related Health Education Material Goods

Social Political Envtal sustainability

Human security

Well being

Decent work

Gender Equality

Total

Example 1 3

Exaple 2 6

Page 19: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Analytical Tool: LEVEL 2

Page 20: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Examples of Business and Social Enterprise Models for Inclusive

Mobility:INTERNATIONAL

Page 21: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Inclusive Mobility Business Models (Transport Service)

Mobius Motors, Africa

• Sustainable mode of transport for rural villagers in Africa

• Motor parts configured to suit the needs of the region (e.g. Terrain)

• Flexible financing for rural entrepreneurs

Page 22: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Inclusive Mobility Models (Transport Service)

Zipcar

• Car-sharing program (Cambridge, Massachusetts) – United States, Canada and UK

• Attempts to lessen cars, congestion and pollution.

• Offers competitive alternatives to car-ownership

• Rates and fares of users vary depending on their membership plan. Both plans are inclusive of gas, insurance and 180 miles of driving.

• Payment to ZipCar is automatically charged to the client’s credit card

Page 23: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Coca-Cola Company’s Inclusive Business Model in East Africa• a manual delivery approach, linking small-scale distributors to small –scale

retailers owning or running small stores or kiosks in densely populated urban areas

• Needs Assessment of the Manual Distribution Centers (MDCs); recruitment of MDC owners; identifying and defining the MDC territory and customer base (i.e., service area= 1 kilometer in circumference reaching up 150 retail outlets); provision of start-up support and guidance (i.e., “business licenses, pushcarts, rent, initial stock of empty crates and bottles, and beverage supply, credit for crates and empty bottles”, guidance on human resource concerns

Inclusive Mobility Models (Access to Goods)

Page 24: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Inclusive Mobility Models (Basic Services)

Mi Tienda, Mexico

• affordable door-to-door delivery of individual items within 48 hours, extended payment terms , and business training for its clients

Page 25: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Washcycle

• A social enterprise based in Philadelphia

• Wash-and-fold laundry service that offers a more sustainable, environment-friendly door-to-door laundry service

• Innovative business solution is focused on a low-cost, low-carbon model

• Makes use of bicycles instead of the usual components of big delivery and manufacturing industries such as trucks and loading areas

Inclusive Mobility Models (Basic Services)

Page 26: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Inclusive Mobility Models (Business Services)

PT Summit Oto Finance, Jakarta• Motorcycle financing for low-level economic employees or mico-entreprise

owners

• small loans to borrowers to earn roughly about $150-$300 a month, only have primary, education, typically run micro-enterprises but do not have bank accounts

• Client due diligence characterized by close customer contact, understanding of borrowers during the underwriting stage, structured appraisal process, tracking of downpayment and month loan repayment relative to monthly income.

• Robust distribution network and strong partnerships (ie. with 4000 authorized dealers of leading motorcycle brands)

Page 27: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Examples of Business and Social Enterprise Models for Inclusive

Mobility:PHILIPPINES

Page 28: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Inclusive Mobility Models: Philippines

Clean FuelTargets loyalty to taxi drivers by providing the following services:

• Free shower room and sleeping quarters (for all taxi drivers)

• Canteen

• Loyalty program that has reward options for the entire family and not only for drivers (i.e, kitchen implements, household equipments, toys, etc)

• Free tune-up

• Monthly calibration of pumping units as part of the confidence builidng measure

• Drainage canals that do not lead to urban centers’ potable water system

• Taxi franchise linked to use of Clean Fuel use

Page 29: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

ICT-based Navigator Systems

• Traffic navigator - real-time status of road systems during rush hour.

• Online platform where commuters can log on to check the status of road congestion in major corridors along EDSA, the central highway in Metro Manila.

• Internet and phone applications

http://ww1.nestle.com.ph/recipe/nestleclub/nestlecares_article02.asp

Inclusive Mobility Models: Philippines

Page 30: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Araneta CenterTargets provincial bus users at the low-income bracket

• Customer needs appraisal

• Safe, clean and customer-friendly terminals

• Integrated transport services (ie. LRT, taxi, FX service, free parking spaces at the terminal, porter services)

• Employment for those at the low-end income bracket: utility services, self-employment via porter service system

• Passenger terminal with access to restrooms, waiting lounge, food stalls, medicines, communication facilities or services

• Passenger terminal strategically linked or proximate to other business establishments

Inclusive Mobility Models: Philippines

Page 31: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Pepeng Pasada ShellTargets loyalty among tricycle , jeepney, taxi, commercialdrivers by providing the following reward services:

• Regular membership]

• Points earned per minimum of 3 liters

• Points can be redeemed for free home appliances and other items, free accident insurance and other related benefits

• Participation in exclusively yearly promos

Inclusive Mobility Models: Philippines

Page 32: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Julie’s Mobile bakeshop• Neighborhood bakeshop chain – making bread

accessible to all

• Service excellence and total consumer satisfaction

• “Selling distinctively delicious, freshly-baked, high quality bread products; and committed to upholding the stringent standards of the Julie’s Bakeshop System: Quality; Customer Service; Cleanliness; Sanitation; Maintenance; and Reliable Management”

• Full management support to franchisees in all steps of the business process including Franchise Application and Development; Training; Marketing; Construction; Operations; Accounting; Human Resource Development; and Expansion

life-snaps.blogspot.com

Inclusive Mobility Models: Philippines

Page 33: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Smart CommunicationsTargets sari-sari stores to reduce transport and other transaction costs in negotiating with wholesalers

• Partnership between Smart and Hapinoy sari-sari stories for the use of Smart Money in the B2B transactions with the assistance of Microventures (to aggregate orders and negotiate bulkpricing from wholesalers ie Nestlle and Unilever)

• Discounts with wholesalers when they use Smart Money as payment

• Increased competiveness in pricing, safety, risk reduction to theft and loss for store owners and delivery personnel

Inclusive Mobility Models: Philippines

Page 34: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Nestle Micro-distributorship ProgramExpanding reach beyond barangays:

• Provides livelihoods to thousands of unemployed citizens (at least high school graduates with an opportunity to become small scale entrepreneurs)

• Micro distribution to sari-sari stores in densely populated areas that cannot be covered by existing Nestle distributors

http://ww1.nestle.com.ph/recipe/nestleclub/nestlecares_article02.asp

Inclusive Mobility Models: Philippines

Page 35: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Ice Cream and Nestle ProfessionalExpanding reach beyond barangays:

• Ice Cream: sell range of ice cream products to those who purchase on “impulse” through street vendors

• Nestle Professional: Business on Wheels (BOW) selling Nestle products to small carinderias

• Peddlers are trained in selling, product knowledge, and mechanics of program, equipped with Nestle-branded motorized cabs and uniforms, enjoy discounts on distributor rates, allowed to mark-up prices on certain percentage

http://ww1.nestle.com.ph/recipe/nestleclub/nestlecares_article02.asp

Inclusive Mobility Models: Philippines

Page 36: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

E-Jeepney

• Electronic jeepneys that run on rechargeable battery

• “Makati Green Routes”

• Private-public partnership with LGU

http://ww1.nestle.com.ph/recipe/nestleclub/nestlecares_article02.asp

Inclusive Mobility Models: Philippines

Page 37: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Online /Pick-up Order System: Gamot Padala

• Mercury Drug

• Free phone-in / online order of medicines

http://ww1.nestle.com.ph/recipe/nestleclub/nestlecares_article02.asp

Inclusive Mobility Models: Philippines

Page 38: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Cashless Transactions

• Smart money

• G-Cash

• Pasaload

• Revolutionizing the way we conduct payments and transfer of money

http://ww1.nestle.com.ph/recipe/nestleclub/nestlecares_article02.asp

Inclusive Mobility Models: Philippines

Page 39: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Barriers

• Policies

– Institutional regulations and structures are mainly government or public sector dependent.

– Laws that exist provide limited flexibility to address mobility problems of the poor and the vulnerable.

– Regulatory mechanisms: vehicle registration, traffic rules and other forms of transport-related policies do exist, these do not entirely present solutions to managing mobility issues

– CLUP – use and allocation of land

• Economics

– Limited financial, economic incentives (taxes, financing schemes)

Page 40: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Barriers

• Cultural

– Shift in mindset - culture of individualized mobility

– Construction of car-ownership as a form of status symbol

• Developmental

– Absence of proper road infrastructures

– Commercialization, private-sector led – fragmented urban design and planning

Page 41: Typology of business, social enterprise and social innovation models for inclusive mobility in metro manila

Enablers

• Institutional Actors

– Advocacy groups, networks, academe, NGOs

– Multi-sectoral stakeholder approaches

• Economics

– Tax incentives

– Recognition/Prioritization of opportunities

• Developmental Framework --- LEED

– Benchmarking system

– Incentives

• Policy Measures

– Comprehensive “metropolitanization” policy