PLDT joins forces with Uber in PH

Philippine Long Distance Telephone Co. (PLDT), the country’s biggest telecommunications company,  is moving beyond the digital highway to Metro Manila’s roads through a partnership with popular ride sharing app Uber.

PLDT, with units Smart Communications and Voyager Innovations, announced Tuesday a multi-year, strategic agreement with Uber in the Philippines, which will include free in-car Wi-Fi and promotions through Smart’s network.

The development is the latest partnership in the telecommunications industry, which is seeking new ways to generate revenues in a digital age.

It also comes as Uber in the Philippines gains legitimacy following the government’s recent move to regulate transport-related smartphone applications, ahead of other countries.

With the partnership, Uber riders will be able to use free Wi-Fi, using Smart and PLDT’s network infrastructure, while onboard Uber vehicles.

The service will initially be available in Uber black vehicles, which refers to the app’s premium service, but will be rolled out across all Uber cars “over the next few months.”

Uber was established in 2009 and was first launched in San Francisco, United States.

Today, it is being used in 335 cities across 60 countries and in the Philippines, it mainly competes with other apps like GrabCar and regular taxi services, which have raised their opposition against the ride-sharing industry as an unfair threat to their business.

Smart said that through the partnership, Uber riders on Smart’s network would be able to avail themselves of promotions, discounts and so-called on-demand experiences.

Smart subscribers in Metro Manila who are first time users of the app can get two free Uber rides worth up to P300 each, from Sept. 9 to Sept 30, it added.

The Uber mobile app will also be pre-installed on all smartphones that come with Smart postpaid subscriptions.

“We’re excited to partner with Uber, the world’s leading technology company that is transforming urban mobility, to bring its innovative digitally enabled service to more commuters in the Philippines,” PLDT chair Manuel V. Pangilinan said in a statement on Tuesday.

“Filipinos are early adopters of new technology and through this partnership with Uber, we’re providing our subscribers the opportunity to make their ride experience even more convenient and enjoyable,” he added.

“In Smart, Uber has found the perfect fit to realize our common vision of providing an unrivaled user experience built on a strong foundation of reliability, convenience and network efficiency,” Mike Brown, Uber regional general manager, Southeast Asia and Australia, New Zealand, said in the same statement.

“The Philippine government has shown tremendous leadership in recognizing the value of ride-sharing services like Uber and developing new sector specific regulations,” he added.

Smart said Uber drivers also gain exclusive prepaid and postpaid mobile packages as well as exclusive phone offers.

As noted, the move is in sync with strategies employed by domestic telcos to shift their revenues into more digital and Internet-based services.

PLDT earlier announced that it would increase its 2015 capital spending to a record P43 billion from P39 billion, mainly to bolster its high-speed Internet infrastructure.

The spending, which may remain “elevated” for the next two years, comes as PLDT sees a big decline in its traditional revenues such as toll earnings and wireless pre-paid business.

These segments, in recent years,  are being displaced by the popularity of social media and instant messaging.