MiCab takes in Hallohallo to boost revenue via digital ads

Newly-registered transport network company MiCab has partnered with a digital advertising company to sustain the ride-hailing business that charges no booking fee and surge pricing.

MiCab on Tuesday signed a partnership deal with Japanese-owned Hallohallo Business Inc. to launch MiAds, a digital advertising platform that will play advertisements on tablets installed inside taxis.

MiCab chief executive officer Eddie Ybañez said the company expects P10,000 in monthly revenue per taxi from the MiAds platform.

“That’s additional revenue for us, given that we’ll have 15,000 taxis,” Ybañez said.

The business model effective in Cebu, where MiCab has 4,000 taxi partners.

Ybañez said the company plans to expand its operations in Metro Manila, Iloilo, Bacolod, Baguio, and Davao.

Since the company has no booking fee and surge pricing scheme—unlike other ride-hailing platforms—Ybañez said the advertising revenue will shoulder its costs and sustain the ride-hailing business.

Partner-taxi operators will shoulder the costs of installing the tablets and data connection, and get a 10-percent share of the revenue. —VDS, GMA News